Israel/US healthcare group of funds Accelmed announced today that it is establishing Accelmed Ventures II, a new venture capital fund with the goal of raising and managing $100 million. The fund, which will be managed by Accelmed partners Dr. Irit Yaniv and Amir Blatt will invest in Israeli and global pre-revenue health-tech startups, including medical devices and digital health.
Accelmed founder and managing partner Dr. Uri Geiger will head the investment committee of the new fund, which has already received a commitment from an anchor investor, Consensus Business Group Ltd. led by the British businessman Vincent Tchenguiz. This is the fourth fund established by the Accelmed group, which currently manages over $300 million through Accelmed Ventures and the private equity fund, Accelmed Partners.
The new fund is being launched in parallel to the fruition of portfolio companies in Accelmed Ventures I, the Group's current venture capital fund, which was established in 2011 by Uri Geiger and Mori Arkin together with Migdal Group. Accelmed accomplished several exits to date, the most recent being Eximo Medical, its portfolio company based in Rehovot, which was purchased last week by AngioDynamics Inc. (Nasdaq: ANGO), for $66 million ($46 million upfront and $20 according to milestones).
Another Israeli portfolio company Endospan, which develops and markets Nexus, a graft-based stent system for the treatment of arterial aneurysms using catheterization as an alternative for surgery, has recently signed an acquisition option agreement with US based CryoLife Inc. (NYSE: CRY), for up to $450 million, pursuant to receiving FDA approval in the US. Under the agreement, CryoLife purchased marketing rights of the system in Europe, where it already received CE clearance.
Dr. Yaniv said, "In recent years there is increased global demand for breakthrough technological healthcare solutions, due to increasing expenditure, estimated at trillions of dollars in the US alone, pronounced population aging and an increased prevalence of cancer and chronic diseases such as obesity, diabetes and heart disease. In the decade since its inception, Accelmed transformed into a dominant player in its ability to identify, develop and commercialize groundbreaking technologies and solutions in the medical device space, due to the knowledge, expertise and varied experience of its managing team in addition to its network of leading players in the industry. The deals which we have recently reported attest to this, and to the significant need in expanding our activity to a new VC fund, which will address the current lack of finance in medical devices in particular and in digital health, as well as the increased interest of medical device giants in acquiring novel solutions in advanced development stages, nearing regulatory approval and commercialization. We are already in the advanced stages of evaluating investments in several companies." Blatt added, "Accelmed Ventures II's investment strategy in medical devices will focus on companies in advanced clinical trials, nearing FDA approval, and after first-in-human trials. In digital health, the fund will focus on companies in initial commercialization stages in the US, be it with hospitals or insurers. Aligned with the Group's investment strategy, we will continue to act as dominant investors, including leading investment rounds ourselves or alongside other Israeli and global funds in the health-tech field, with involvement in the companies' Boards of Directors, in order to lead them towards achieving their development and commercialization goals. The average investment in a company is planned to be approximately $8-10 million per company, including follow-up investments."
Published by Globes, Israel business news - en.globes.co.il - on October 7, 2019
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