Wellstar's Catalyst fund has full roster of investments
Illustration: Aïda Amer/Axios
Georgia health system Wellstar Health's Catalyst fund has a "full slate" of direct investments for the coming fiscal year, says Hank Capps, president of Catalyst by Wellstar.
Why it's the BFD: Funds like Catalyst are helping fill the financing chasm caused by the collapse of Silicon Valley Bank.
Driving the news: Wellstar launched a $100 million dollar fund last month, to be invested across digital health, customer experience, data, future of work, supply chain and logistics, and sustainability.
- The first four direct investments announced were with med-tech company 410 Medical; pre-natal and postpartum digital health company Marani Health; antimicrobial tech company Vyv; and patient data company MetaCX.
- "We anticipate having numerous more direct investments this fiscal year and a full slate for the coming fiscal year," Capps tells Axios.
What they're saying: "Now more than ever before, there is a real gap in funding innovation from early stage of concept and commercialization and high adoption of innovative ideas," says Kyle Chenet, CEO of 410 Medical.
- "There is a lack of funding, especially in the Southeast, as fewer of these funds have positive impact in the state of Georgia," he adds.
Zoom in: 410 Medical, known for its handheld rapid infusion device Lifeflow, has raised $20 million including a $7.5 million Series B from Catalyst.
- "We will leverage this capital, plus cash flow from revenue will fund the company through profitability and to be cash flow positive," Chenet says. "Then we will maybe pursue a growth equity investment in two to three years."
Meanwhile, Marani Health CEO Ann Holder says access to quality pre-natal and birthing care is more limited in Georgia, noting the state will be the first Marani deploys to.
- The company is currently submitting its remote fetal-monitoring device for regulatory approval to the FDA and is eyeing a Series A fundraise now, the CEO says.
- "We are selling into large hospital systems who understand how to make care delivery more efficient and provide better outcomes and help hospital profitability," she says.
By the numbers: Wellstar plans to make 50 direct investments, to create a portfolio of funds that will have 150 indirect investments, Capps says.
- Those 200 companies will see investments made at the pre-seed, seed and Series A level, he says.
