The new $100M will address the problems faced by entrepreneurs in raising capital for their novel devices.
FREMONT, CA: A new fund worth $100 million has been launched for pre-revenue medical devices and digital health startups. This is notably the fourth fund launched by Accelmed, a well-known group of funds based in Israel and New York that is currently managing more than $300 million.
Accelmed is a recognized group of funds investing in health tech companies. It has recently announced investment that nearly accounts to $100 million funds in early-stage, pre-revenue medical devices and digital health startups around the world, especially in Israel. Accelmed has already invested in three funds, and this is evidently the fourth fund. So, it currently manages more than $300 million and is to be lead by Dr. Irit Yaniv and Amir Blatt, partners at Accelmed. The motto of the funding is to address the problems faced by device entrepreneurs in raising capital for their novel devices, and thus, the fund will invest in device companies.
This funding highly benefits the device companies that deal with advanced clinical trials, nearing FDA approval, and those that are after first-in-human trials. Also, in digital health, the fund will invest in companies in the initial commercialization stages representing the hospitals or insurers in the US. Further, the fund looks forward to making an average investment of $8 million to $10 million per startup, including follow-on investments. Since Accelmed founded in 2009, it has funded about 20 health tech companies.
Accelmed includes two entities:
• Accelmed Partners - It is private equity based on the US, mainly focusing on health tech carrying out buyout and growth investments in commercial-stage companies.
• Accelmed Ventures – It is a venture fund and is Israel based investing in pre-commercialization health tech companies.