- OSF Ventures recently announced a $100 million third fund. These are the details.
OSF Ventures recently announced that it launched its third capital investment fund, which is the largest since it initiated this program in 2016. The $100 million third fund will be used to continue a strategy that links investments to key priorities of improved patient care, outcomes, and greater operational efficiency. And the third fund brings total assets under management in the venture program to $250 million.
OSF Ventures is part of the Innovation strategy of OSF HealthCare, which is a 15-hospital system in Illinois and Michigan. And investments are focused on digital solutions, tech-enabled services, and medical technology, including medical devices, diagnostics, and therapeutics.
The corporate investment arm of OSF HealthCare made 26 direct investments to date. Plus it has invested in three healthcare-focused venture capital funds. And of the direct investments, the program has experienced 9 successful exits, and today manages an active portfolio of 17 companies.
Stan Lynall, vice president of Venture Investments, and his 7-person team have worked at an astounding pace, even during the pandemic. And since launching its first venture capital fund, the OSF Ventures team has vetted close to 1,500 opportunities.
An example of a successful clinical integration involved a collaboration that led OSF HealthCare to pilot and then fully implement SilverCloud, a behavioral health platform with online and app-based modules to help individuals dealing with mild to moderate stress, anxiety, and depression. And OSF was an early adopter and within three years, the number of people benefitting from enrolling has expanded to 7,000.
KEY QUOTES:
“Our actual hands-on use in piloting the technology, or collaborating in other ways, is what we value in the process. This allows us to provide meaningful feedback that results in our portfolio companies developing successful solutions that are really valuable to our patient base. Scaling investments through partnerships and practical collaborations with budding tech companies from across the globe helps us bring emerging health care solutions to OSF HealthCare clinics and hospitals, most often before they are broadly marketed and deployed.”
— Stan Lynall, vice president of Venture Investments
“Entrepreneurs appreciate early adoption of their technology and we value having access to the best, cutting edge solutions,” said Conger. “For example, we had a head start in the early days of the pandemic, because we had already vetted solutions and had strategically planned for implementing several of the new communication tools we deployed, albeit at an accelerated pace. We were prepared because of our long-range Innovation plan, including important investments and collaborations through OSF Ventures.”
— Michelle Conger, chief strategy officer and CEO of OSF OnCall Digital Health
