A new venture capital fund based in Williamson County is aiming to raise $100 million to invest in health tech companies.
The new firm is called Caduceus Capital Partners. David Vreeland will lead the new fund, along with Scott Kolesar. Both are leaders at the Nashville-based venture capital fund Jumpstart Capital.
Vreeland said Caduceus has essentially the same DNA as Jumpstart Capital—the same leadership team—but it’s a new brand and it’s not owned by Jumpstart Capital’s parent company Briovation.
Vreeland was the co-founder of the Franklin-based health care IT consulting firm Cumberland Consulting Group and will continue to serve as the managing director of Jumpstart Capital. In addition to working with Jumpstart Capital, Kolesar served in health care leadership roles with Ernst & Young and Deloitte Consulting.
Entrepreneur Chris Ryan will lead investor relations for Caduceus. The firm also has a group of 12 senior health care executives who will serve as advisors.
The Caduceus website predicts that the next decade will be “the golden age of digital health.” In large part, that’s because the coronavirus outbreak has accelerated the adoption of technology like remote patient monitoring, telehealth and automated prescription delivery.
The firm argues that many of those technologies were already gaining steam before the pandemic. They point to millennial consumers who are demanding more digital technology in health care and the need for health care companies to compete with tech giants like Amazon, Google and Apple.
Caduceus is looking to invest in 25 early-stage digital health companies with at least $1 million in annual revenue. Vreeland said he expects to close the first outside investment in Caduceus, about $15 to $20 million, sometime next week.
The firm’s website says the group will be actively involved with companies it invests in, offering operational expertise and insight on matching products to a market. The firm is also reserving up to half of its fund to provide additional funding to companies that need it.
The firm has already added one health tech company to its portfolio. (Vreeland and Kolesar contributed $1.5 million to make the deal happen.) The Nashville-based company Healthcare Value Analytics helps physicians track the patient’s cost of care in real time and measure it against the average cost for similar diagnoses.