A health care technology venture capital firm with a large presence in Winston-Salem has closed a $71 million fund and will use the money to invest in seed- and Series-A-stage companies.
FCA Venture Partners closed its FCA Health Innovations II fund at more than $71 million, well over the fund’s initial target of $50 million.
Headquartered in Nashville, FCA has invested in and helped scale top companies in the digital and technology-enabled health sector, such as Denver-based SonderMind; Nashville-based ProviderTrust; and New York-based RubiconMD.
FCA has also invested in fast-growing Winston-Salem health care companies Javara, an integrated research company; NVOLVE, a remote patient monitoring company; and Clinical Ink, a health software company focused on clinical trials that is headquartered in Pennsylvania but maintains a Winston-Salem office.
Commitments for FCA Health Innovations II have come from premier health care organizations in North Carolina, the firm said, including six large health systems and a major payor in addition to several family offices, health care executives, entrepreneurs, providers and individual investors. FCA did not disclose the investors’ identities.
“With most of the large health systems in North Carolina as limited partners, along with an incredibly engaged advisory board of seasoned health care executives, we have access to unique expertise and insight into pain points in health care,” said Tom Hearn, partner at FCA. “We continue to build deep relationships with our strategic limited partners, leveraging these relationships to gain valuable feedback on the market and vet potential investments.”
FCA’s Health Innovations Advisory Board includes several local top health executives, such as Don Flow, CEO of Flow Automotive; Jennifer Byrne, CEO and cofounder of Javara; Dr. John McConnell, CEO Emeritus of Wake Forest Baptist Medical Center and professor of urology at Wake Forest University School of Medicine; Angela Yochem, chief transformation and digital officer for Novant Health and COO of Novant Health Enterprises; Rick Shrum, chief strategy officer at WakeMed Health; and Terry Williams, chief population, corporate and government affairs officer at Atrium Health.
In recent years, FCA has experienced nine successful exits, it said, driving approximately $100 million in exit value. FCA’s current portfolio companies have also raised more than $285 million in follow-on capital since the second quarter of 2021.
“We are appreciative of the continued support from our existing investors and vote of confidence from the many new investors in FCA Health Innovations II,” said Managing Partner Matt King. “Following many successful exits over the past few years, we remain energized by the growth potential that exists in early-stage health care venture capital. We have managed our fund size growth to remain fully committed to that segment of the market.”
So far, FCA has invested in eight companies out of FCA Health Innovations II – Javara, Integrative Health Centers, eBlu Solutions, PayGround, Impiricus, OhMD, Carallel and Posterity Health. The firm is continuing to actively invest out of this fund, planning to invest $1 to $4 million in an additional five to seven health care companies.
FCA is also currently investing FCA VII fund.
“FCA Venture Partners is committed to identifying and supporting early-stage health care technology companies that are poised to deliver significant value through a breakthrough solution,” said Todd Johnson, partner at FCA. “That starts with CEOs and leadership teams who are experienced and visionary. We have been very pleased with the quality of our portfolio [companies] … in that regard.”
