In a move to develop more digital health startups and new, breakthrough medical devices, Accelmed just launched a new fund of nearly $100 million for investing worldwide. This is the fourth fund from the New York- and Israel-based firm, that will specifically target entrepreneurs who are trying to raise capital for their innovative devices to go through regulatory processes—clinical (and human) trials and FDA approval—while also providing digital health companies with the capital to fund initial stages. The firm will invest an average of $8 to $10 million per startup.
Founded in 2009, the firm has already backed 20 health tech companies, including the acquisition of several and has managed more than $300 million in investments in digital health startups and medical devices. On the digital startup side, the company is comprised of two components: Accelmed Partners, a U.S. -based private equity fund focused on health tech, including buyout and growth investments in commercial-stage companies; and Accelmed Ventures, a venture fund, based in Israel that invests in pre-commercialization health tech companies.
The firm is responding to increased demand for innovative, tech-based healthcare solutions, which account for trillions spent in the U.S. alone given increases in chronic diseases and cancer. “In the decade since its inception, Accelmed transformed into a dominant player in its ability to identify, develop and commercialize groundbreaking technologies and solutions in the medical device space, due to the knowledge, expertise and varied experience of its managing team in addition to its network of leading players in the industry,” said Dr. Irit Yaniv, managing partner, Accelmed Ventures, in a company statement.
An executive in Israel’s medical device industry, Yaniv has already acted as CEO of several startup companies. “The deals which we have recently reported attest to this, and to the significant need in expanding our activity to a new VC fund, which will address the current lack of finance in medical devices in particular and in digital health, as well as the increased interest of medical device giants in acquiring novel solutions in advanced development stages, nearing regulatory approval and commercialization,” she said. “We are already in the advanced stages of evaluating investments in several companies.”