One of the largest players in the healthcare venture funding market, The Silicon Valley Bank, reported that U.S. healthcare venture fundraising reached an all-time high of $10.7 billion in 2019. It’s not surprising that venture investments in the healthcare tech arena were especially lucrative as there has been sizable growth in alternative care and provider operations.

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The Traditional Way

In the past, venture investing has predominantly been in huge medical centers such as the Mayo and Cleveland clinics. These mammoth organizations have highly invested in faculty-created inventions and have provided seed money for many promising start-ups.

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Getting Outside Help

This is basically asking an outside investor to develop and run a corporate venture capital program. They do all the legwork by looking for innovations to test, refine, and scale with the intention of bringing them to market. They often do this by creating simulation beta environments and consumer testing. This strategy is also deployed by heavy healthcare hitters like Providence St. Joseph Health and Cedars-Sinai.

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Betting on Yourself

Many organizations explore investment opportunities within. For example, creating a technology wing to test innovations like 3-D printing and augmented reality. This type of strategy can fit well with long-term goals, especially if the desire is to partner with vendors, researchers, and venture capitalists like Revere Partners.

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