Home Feature With launch of $100 Million Venture Fund, Catalyst by Wellstar looks to shape the future of healthcare

With launch of $100 Million Venture Fund, Catalyst by Wellstar looks to shape the future of healthcare

by hypepotamus

Attention startup founders: There’s a new fund in town ready to deploy capital. 

The Georgia-based healthcare system giant Wellstar announced last week that Catalyst by Wellstar is launching its $100 million fund designed to “shape the future of healthcare.”

The fund is certainly not just looking to back biomedical device startups or BioTech companies. Instead, the fund focuses on six key areas that impact the healthcare industry overall:  Customer experience, data analytics and security, digital health, the future of work, supply chain and logistics, and sustainability. 

Focusing on a variety of different industry verticals is strategic, says Hank Capps MD, who serves as president of Catalyst by Wellstar and executive vice president, chief information and digital officer for Wellstar Health System.

“We believe that not all healthcare problems will be solved by healthcare solutions which means we’re looking across cross industries for breakthrough ideas that have potential to positively impact the future of healthcare,” he told Hypepotamus.


A Look At The Fund

The fund aims to deploy capital into 50 pre-seed through Series A startups over the next five years. It will also look to make over 150 indirect investments through partnerships with “venture and growth equity funds with proven track records of success,” according to a press statement. 

Catalyst by Wellstar has already made four direct investments into startups, including Minneapolis-based Marani Health, North Carolina-based 410 Medical, New York-based Vyv, and Indianapolis-based MetaCX

The pandemic created a flurry of venture capital activity in the HealthTech and BioTech verticals. While the sheer number of VC deals dropped year-over-year in 2022 after a COVID-related bump, the number of healthcare systems building out investment arms has continued to rise. Wellstar joins a growing list of health systems across the country – including the Cleveland Clinic, Kaiser Permanente, and the Mayo Clinic – to jump into startup investing. 

Hospitals across our nation are facing financial difficulties due to staffing shortages, reduced patient volumes, increased inflation, and constant pressure from for-profit payers to increase their margins. The most progressive health systems in the U.S. are leveraging venture capital to gain access to the latest technologies and reduce overall cost to solve some of the largest problems in healthcare,” Capps added. 

Catalyst At Work In The Southeast 

Catalyst by Wellstar is no stranger to the Southeast startup scene. It joined Engage VC, the Atlanta-based corporate venture platform, in 2021 and through the partnership has worked with 30 startups, 5 of which have signed enterprise agreements with Wellstar to date. 

Catalyst has also partnered with Atlanta-based Goodie Nation to bring more access to capital to underrepresented and minority tech founders. 


Ready To Pitch? 

Startups that are interested in pitching Catalyst by Wellstar can start by submitting information based on their industry and vertical here.


Featured Photo: Dr. Hank Capps (LinkedIn) 

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