What You Should Know:
– Flare Capital Partners, a Boston-based healthcare technology venture capital firm closes its third fund with $350M, which follows up on its prior two funds raised in July 2019 and the inaugural fund raised in April 2015, respectively.
– The most recent fund, establishes Flare Capital Partners as one of the largest, independent, early-stage venture capital firms dedicated to healthcare technology.
“When we started the firm in 2014, over $4.5 billion was invested in healthcare technology companies; in 2019, when we raised our prior fund, $8.1 billion was invested. Arguably, in part due to the pandemic exposing such significant issues, nearly $29.1 billion was invested in the sector in 2021. Notwithstanding that the 1Q22 amount of $6.0 billion suggests a more moderate investment pace for 2022, this year will also see an extraordinary level of activity, likely to be ~60% greater than 2020, which was the second strongest year for digital health investing. A decade ago, healthcare technology was less than 5% of all venture capital activity; now it is trending to be ~10% of all venture investments,” said Michael A. Greeley, General Partner at Flare Capital Partners.
“And the adoption of healthcare technology solutions is accelerating. Many companies launched over the last five to ten years can now point to measurable impact on outcomes and costs. Companies more often than not are able to claim real attribution for the successes of their products and services; that is, they are able to calculate an ROI with actual data. Robust and scalable business models exist and are now better understood (product development timelines, successful “go-to-market” strategies, revenue models, etc). The sector is reaching an important threshold level of maturity. While this is an important milestone for Flare Capital, we will continue to be heads down assisting our entrepreneur partners to build important and valuable healthcare technology companies,” added Greeley.