Venrock Raises $450 Million Health and Tech Investment Fund


Palo Alto, Calif.-based venture capital firm Venrock announces that it has closed its seventh investment round, totaling $450 million in new capital. The announcement came in the form of a blog post from Venrock partner Bryan Roberts, who says “we are really excited about what’s happening at the intersection of healthcare and technology, as the opportunity to dramatically remake our healthcare system attracts a quality and breadth of entrepreneurial talent that is truly staggering.”

Venrock has been an active digital health investor for some time, regularly appearing in Rock Health’s annual funding reports as a leader in the space, alongside the likes of Andreessen Horowitz, Google Ventures, and Qualcomm Ventures. So far in 2014, the firm has led rounds for Zenefits, Grand Rounds, and ex-national coordinator Farzad Mostashari’s own startup Aledade.

Venrock has a long standing history of picking winners within the health IT market. The company got in early on RelayHealth which was then acquired by McKesson, before going on to power the McKesson/Cerner interoperability partnership CommonWell. Venrock also participated in athenaHealth’s $10 million round in 1999, and came back in 2000 to contribute to a second $30 million round.  Athena went on to issue an IPO in 2007, raising $113 million. Athena stock surged 97 percent on its first day on the stock market. Venrock also had early money in Vocera, Doctors on Demand, and Castlight Health which went public this year, raising $178 million on a $1.4 valuation. Castlight’s stock climbed 149 percent on its first day of trading.

Venrock has had eight portfolio exits that netted north of $1 billion in the last five years, and has had five IPO’s and five M&A’s so far in 2014. The new funding will help Venrock increase its presence in health IT, data analytics startups, and will also allow it to “doubled down in New York to take advantage of the increasing opportunities in the very fertile, growing New York startup ecosystem.”

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