CVS launches $100 million venture capital fund
CVS Health launched a new $100 million venture fund called CVS Health Ventures with plans to invest in digital health startups.
Why it matters: With nearly 10,000 retail locations around the U.S. and its Aetna subsidiary serving more than 22 million members, any investment by CVS Health has some serious potential for scale.
Details: CVS Health has already made more than 20 direct investments through the CVS and Aetna businesses. Officials say this venture fund is targeted at early-stage groups and will help them scale through commercial relationships. It also fits with their strategy embracing increased healthcare consumerism.
What they're saying: "Forming CVS Health Ventures will build on our successful track record of scaling innovation and driving change in health care," said CVS' Health's CEO Karen Lynch.
What we're hearing: "CVS Health is a $100 billion company and investing one-tenth of 1% of their market cap isn't going to fix healthcare, but it's a good start," Andrew Dudum, CEO and co-founder of telehealth brand Hims & Hers told Fierce Healthcare.