What You Ought to Know
- The Increase: Frist Cressey Ventures (FCV) has closed an oversubscribed $425M Fund IV, bringing its complete belongings beneath administration to just about $1 billion.
- The Technique: The brand new fund will give attention to early-stage healthcare corporations remodeling care supply, with a selected emphasis on AI-native enterprise fashions and tech-enabled companies.
- The “Moat”: FCV’s strategic Restricted Companions (LPs)—together with The Cigna Group, MedStar Well being, and OhioHealth—present healthcare to over 50% of the U.S. inhabitants, giving portfolio corporations an enormous benefit in distribution and pilots.
Strategic Benefit
FCV has constructed a syndicate of strategic companions—together with The Cigna Group Ventures, MedStar Health, and OhioHealth—that collectively contact greater than 50% of the U.S. inhabitants.
For a startup founder, that is the distinction between a test and a buyer.
- 25% of FCV’s portfolio corporations have secured funding from no less than one in every of these strategic companions.
- The Cigna Group explicitly famous that the collaboration helps them “advance options that drive higher well being outcomes.”
FCV made its title investing in value-based care fashions (like Thyme Care). Fund IV will proceed that work however is aggressively increasing into “AI-native enterprise fashions.”
FCV Profitable Observe Report
The agency is getting into its second decade with a scorecard that validates its “policy-plus-capital” strategy.
- Efficiency: Fund I and Fund II rank within the prime 5% of all enterprise capital funds for his or her respective vintages.
- Exits: The agency has notched 14 profitable exits out of 44 complete investments.
“This milestone displays the readability of objective, conviction, and deep dedication of our workforce, traders, and portfolio corporations, all united by a shared mission to advance innovation in healthcare that improves lives and retains sufferers on the heart of the whole lot we do,” mentioned Sen. Invoice Frist, MD, Co-Founder and Managing Companion, Frist Cressey Ventures. “As we enter this subsequent chapter, we’re excited to construct sturdy, transformative, and enduring partnerships – and to function a trusted companion to the leaders and firms shaping the way forward for patient-centered care.”
