HealthQuest Capital closes $675m for Fund IV to invest in growth-stage healthtech startups

HealthQuest Capital closes $675m for Fund IV to invest in growth-stage healthtech startups

Published: 18-05-2022 13:35:00 | By: Pie Kamau | hits: 383 | Tags:

HealthQuest Capital, a sector specialist capital firm focused on companies optimizing value in healthcare, announced the close of HealthQuest Partners IV, L.P., at its hard cap of $675 million.The oversubscribed fund will enable HealthQuest to continue to invest in growth-stage companies that are revolutionizing thehealthcare industry.

HealthQuest invests across healthcare subsectors, and believes healthcare innovation occurs at the convergent points between medical technologies, diagnostics/tools, digital health and innovative services. Target markets for fund IV include commercial-stage companies that improve patient outcomes, or reduce cost and inefficiency in the healthcare system. HealthQuest will also seek growth companies with an emphasis on current trends in the healthcare sector that are hitting an adoption inflection point with long-term impact. Fund IV will look for companies innovating on the clinical/technology side, such as AI-enabled diagnostics and precision oncology, as well as companies innovating on the care model side, including evolving primary care and mobile caregiver solutions.

Garheng Kong, Founder and Managing Partner, HealthQuest: "The pandemic, the evolution of value-based care and increasingly informed patients have produced an environment that has created an unprecedented openness towards the adoption of new technologies. With our investment partners and ecosystem of advisors, we are uniquely positioned to ensure these innovations are adopted at scale and at price points that will meaningfully improve patients'  lives."

Since the firm's founding in 2013, HealthQuest has raised more than $1.6 billion across four funds and has made investments in a variety of healthcare startups including Everly Health, Lunit, Thirty Madison and TigerConnect. The team has also seen 18 exits across IPOs and M&A transactions, including the sale of BardyDx to Hillrom (now Baxter), BioIQ to LetsGetChecked, Biotheranostics to Hologic, and the IPO of Castle Biosciences.

The HealthQuest team is led by founder Garheng Kong, a physician, scientist, and engineer by training. With over two decades of experience investing, Garheng has led nearly 30 companies to successful exits. The HealthQuest team is strengthened by a board of advisors comprised of current or former CEOs in the most influential healthcare companies in the country, including Aon HewittBecton Dickinson, Bon Secours Mercy Health, Cardinal Health,  Humana, LabCorp, Medtronic, OptumHealth and a former U.S. Surgeon General. Together, the HealthQuest ecosystem provides portfolio companies unique strategic insights, access, and opportunities.

"When it comes to the adoption of new healthcare innovations, there is a natural tension between patients, providers and payers. Our team helps our portfolio companies understand how each player sees the problem in order to increase the likelihood of commercial success," Kong said. "With the new fund, HealthQuest Capital is able to work alongside these companies to give them the support they need to make a widespread impact in the healthcare sector."