DiagnosticsFirm Looks For Health Start-Ups That Save Money
Chrysalis Ventures, a venture capital firm in Kentucky, is looking for health care start-ups that save money and betting that they will get a greater share of health dollars once reform takes shape, The New York Times reports. ""Whatever form health care reform takes, we believe companies that can improve the productivity and efficiency of improvement of health care services and avoidance of medical problems are going to prosper, and we"re putting our money behind that belief," (Chrysalis Ventures Chairman and Managing Director David) Jones said."
Firms in which Chrysalis has invested include a company that incorporates credit card bills and other debt into a personalized budget with medical costs, a company that determines likelihood that a pregnant woman will have a pre-term birth and a health coaching Web site.
"Chrysalis has $400 million under management and closed a new, $175 million fund last year. While most venture firms are cutting back on investments this year, Chrysalis figures that these cost-saving technologies will be in more demand than ever. The firm usually invests in five new companies a year, but this year will probably back eight. Most are in the Midwest or the South" (Cain Miller, 7/21).
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