Kaiser Permanente Ventures Sets Up $141 Million Fund To Invest In Healthcare Companies

By Amit Chowdhry ● December 9, 2019
  • Kaiser Permanente Ventures announced that it closed the firm’s fifth investment fund at $141 million

Kaiser Permanente Ventures recently announced that it closed its fifth investment fund at $141 million. With this funding round, it brings the firm’s total assets under management to more than $500 million.

And this latest fund includes financial commitments from Kaiser Permanente and a diverse group of new and returning external strategic investors including Tufts Health Plan, Henry Ford Health System, and Highmark Ventures — which is a subsidiary of Highmark Health. KPV Fund V is going to continue KPV’s focus on supporting the growth of innovative companies that are addressing some of the most biggest unmet needs in the health care system.

“We are in the midst of a tremendous opportunity as the U.S. health care system transitions to value-based care,” said Chris Grant, executive vice president and chief operating officer of The Permanente Federation and co-founder of KPV. “To succeed in this shift, and to help Kaiser Permanente advance its own efforts to deliver high-quality, accessible, and cost-effective care, we continue to find and fund the innovations and entrepreneurs that understand where the system is headed and that can enable its future success.”

The Permanente Federation is the national leadership and consulting organization for the eight Permanente Medical Groups — which are comprised of about 23,000 physicians who care for 12.2 million Kaiser Permanente members.

KPV specifically invests in companies focused on health information technology, digital health, health care services, medical devices, diagnostics, and precision medicine. And the team partners with entrepreneurs to advance solutions aligned with Kaiser Permanente’s focus on quality, affordable, and accessible health care. So far, the firm has invested in more than 70 companies through its venture funds since the program’s inception in 1998.

And KPV’s portfolio represents important innovations in health care delivery since it launched 20 years ago. KPV’s portfolio includes iRhythm (an ambulatory cardiac monitoring company), Health Catalyst (an industry leader in health care analytics and outcomes improvement solutions), and Omada Health (a pioneer in digital health and behavioral change).

KPV senior managing director Sam Brasch pointed out that the organization has achieved success by taking the insights it derives from its deep engagement with Kaiser Permanente and investment partners, and applying those learnings to support entrepreneurs.

And by working closely as a conduit between Kaiser Permanente, its investment partners, and the innovation ecosystem, KPV has helped emerging companies better understand and build products and services that fulfill the actual needs of the health care system and the individual health care consumer.

“The success of Fund V underscores our proven ability to identify and meaningfully support entrepreneurs tackling the most pressing challenges facing the U.S. health care system,” added Brasch. “I’m excited by the opportunity to build on our successes as we look to advance innovations that improve health and health delivery in the United States.”