Create Health Ventures, a VC firm focused exclusively on early-stage digital health startups with founders from the healthcare industry, announced the closing of its first $21 million fund and its goal to invest in innovations that increase access to healthcare for all, improve the patient experience, and enable better health outcomes for patients. And the company invested in Business-to-business (B2B) Solutions that payers and pharmaceutical companies can use to achieve business goals ranging from increased patient engagement and more effective treatment to recruiting and retaining participants in clinical trials as the need for participants increases.
The company is comprised of two founders and managing partners with over 45 years of healthcare experience, Cartmell and Amit Aysola, who together have over 80 strong growth Companies. Austin-based Cartmell has 25 years of healthcare experience as a chief operating officer, chief revenue officer, board member and VC investor, and is an advisor to Morgan Stanley, UnitedHealthcare, the University of Texas at Austin Dell Medical School and the UK government. Chicago-based Aysola has more than 20 years of healthcare experience as a management consultant, operator, investment banker and VC investor, and is an advisor to the Michigan Biomedical Venture Fund and the Institute for Artificial Intelligence in Medicine at Northwestern University. As a team, they bring their expertise, regulatory know-how and operational knowledge to their portfolio companies, as well as deep industry relationships, including limited partners (LPs) with successful exits who mentor the founders and CEOs of their companies.
A key focus of Create Health Ventures is investing in payer-facing technologies, as these subsidize or fund provider-focused technologies to implement value-based models and successfully improve the member experience.
Create Health Ventures is also investing in technologies that strengthen pharma companies’ ability to recruit and retain patients in clinical trials as the industry ramps up clinical trials and later-stage manufacturing. And the number of drugs currently in phase three clinical trials (18%) has surpassed pre-Covid levels (15%). Currently, the pharma industry has a variety of point solutions, but lacks data and workflow connectivity.
Create Health Ventures has made five investments to date and leverages an LP base of foundations, impact investors and strategic industry partners. Many LPs are healthcare industry veterans who have started and exited companies, creating a network that actively mentors and supports the firms’ portfolio companies. And the firm offers a unique platform of value-added services to support its portfolio companies and executives, provided free of charge, and address the challenges of building and scaling. This also includes strategic partnerships that support recruiting, access to executive performance coaches, business development support and connections to healthcare industry veterans, among other benefits.
KEY QUOTES:
“We’ve heard firsthand from payers, providers and pharmaceutical companies that their business goals are to improve the patient experience, enable better health outcomes and increase access to care for all, especially those experiencing health inequities. We know that healthcare founders know exactly how to use technology to solve these challenges, and supporting them is the most powerful way we can invest to positively impact the healthcare industry.”
- Emma Cartmell, Co-Founder and Managing Partner of Create Health Ventures
“Health insurance members have an insurance card in their wallet but no digital experience like they do in most other areas of their lives. Payers want to change that by digitizing the member experience so they can identify members in need and better help them navigate their healthcare. But the biggest challenge in healthcare is still the lack of data and workflow connectivity between stakeholders. By supporting technologies that sell to health insurance companies, our company is enabling more seamless data and workflow aggregation that will change the game for payers, providers and patients. Additionally, payers can more effectively scale these technology solutions across geographic boundaries, reaching a wider range of stakeholders.”
“There is a tremendous need for innovation in the clinical trial space in pharma as the number of late-stage trials is increasing rapidly. Keeping pace with this increasing demand requires more robust and holistic technology solutions that enable the recruitment and retention of study participants.”
“As a practicing physician passionate about using technology to solve the massive problem of uncoordinated healthcare, I recognized early on the challenges that come with launching a startup, such as navigating the investor landscape and the importance of selecting partners with the expertise needed to support these efforts. It was invaluable to partner with an expert firm that helped me build my team operationally, scale my company quickly, grow our health insurance customer base, and fund our most recent round of funding.”
- Dr. Chip Grant, interventional cardiologist and founder and CEO of Watershed Health
“Many investors present themselves as value-added partners. No one lives this commitment like the team at Create Health Ventures. They are empathetic, collaborative and actively help us grow and improve our business. I couldn’t have asked for a better partner.”
- Shara Cohen, President and CEO of Carallel
“Create Health Ventures has provided us with expertise every step of the way since raising the fund, including go-to-market strategy and operations. As we continue to grow our customer base and reach more underserved communities with high-quality care, our team of investors will help us manage our growth and make valuable connections along the way.”
- Neil Batlivala, Co-Founder and CEO of Pair Team
“As a purpose-driven marketing agency, it’s important that we partner with organizations that share our values. Create Health Ventures works on solutions that promise a healthier world and meaningful value for our stakeholders. Together, our efforts go beyond business outcomes and align incentives to positively impact people’s lives by connecting them with the care they need. This is the kind of collective success we strive for as an agency.”
- Scott Ensign, chief strategy officer of Butler/Till
