California HealthCare Funds Medtech Businesses For Social Ends

Article preview from Start-Up - January, 2013 

Certain medtech companies might benefit from looking to the California HealthCare Foundation (CHCF) as a new funding source that will help get them ready for venture funding or expansion into new markets. The CHCF Health Innovation Fund is authorized to provide up to $3 million (with most deals falling in the $250,000 to $1 million range) in debt or convertible equity to health care companies that meet the private non-profit foundation’s goals of increasing access to care for low-income patients or reducing costs.

California HealthCare Funds Medtech Businesses For Social Ends

Article preview from Start-Up - January, 2013 

Certain medtech companies might benefit from looking to the California HealthCare Foundation (CHCF) as a new funding source that will help get them ready for venture funding or expansion into new markets.

The CHCF Health Innovation Fund is authorized to provide up to $3 million (with most deals falling in the $250,000 to $1 million range) in debt or convertible equity to health care companies that meet the private non-profit foundation’s goals. The primary purpose for making an investment, says Margaret Laws, director of the foundation’s Innovations for the Underserved Program, is to increase access to health care for low-income or otherwise underserved populations, or to lower costs. Two years ago, the foundation formed a $10 million program-related investment fund to meet these social goals of the state of California.

The foundation invests in commercial companies with technologies that benefit low-income populations. As an example, the CHCF’s portfolio company Direct Dermatology provides access to affordable specialty care.  Laws notes that the goal is to quickly scale new business models and she feels that companies can generally do this better than research institutions. “A typical grant that goes to a university research center or a non-profit organization usually funds one project or experiment in one location. A company is generally trying to develop a product that it wants lots of people to buy.”

Continued...

To read this article in its entirety, purchase now as a PDF and receive it immediately via email. Or get it FREE when you subscribe to Start-Up.

About Start-Up

No publication reviews leading edge companies and technology better than Start-Up. Each issue of Start-Up profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics.

Plus:
To find out about more about more about Elsevier Business Intelligence's medical device publications and databases, multi-user access and/or advertising with Medical Devices Today, please contact Kristy Kennedy at (480) 985-9512