While venture capital activity remains concentrated on the coasts, a Wisconsin-based healthcare investor continues to bet on Midwest innovation. Venture Investors Health Fund announced the close of its seventh fund, raising $80 million to support early-stage medical technology companies.
Key Points
- The fund focuses exclusively on healthcare companies developing innovations in medical devices, diagnostics, digital health, and pharmaceuticals. The firm states it targets companies “that have the capacity to redefine—not just refine—care pathways.”
- Portfolio examples include EarliTec, which has developed an eye-tracking method aimed at diagnosing autism faster than current approaches, and HistoSonics, which uses sound energy to destroy tumors noninvasively.
- VI has invested in more than 40 university-affiliated spinout companies from institutions including the University of Wisconsin-Madison and the University of Michigan. The firm plans to continue focusing on commercializing academic research.
- Based in Madison, Wisconsin, the firm has operated for 40 years and has invested in more than 80 companies. Eleven exits have achieved valuations between $250 million and $2.25 billion, according to the announcement.
- Geographic focus areas include Minneapolis, Madison, Milwaukee, and Ann Arbor, with the firm citing proximity to research universities and healthcare corporations such as Epic, GE, and Exact Sciences.
The fund aims to support entrepreneurs developing medical technologies that could change how patients receive care, with a focus on translating academic research into commercial products.
The Data
- The $80 million seventh fund represents the firm’s latest capital raise.
- VI’s portfolio includes companies that have exited with valuations ranging from $250 million to $2.25 billion.
- Past investments include ThirdWave Technologies, TomoTherapy, IntraLase, Neurovance, NeuWave Medical, and LenSx Lasers.
Industry Context
By focusing on technology that truly transforms how patients receive care, we aim to accelerate the translation of decades of research into real-world impact for patients and their physicians.
Jim Adox, Managing Partner at Venture Investors Health Fund
The firm positions itself as a specialized healthcare investor in a region where venture capital activity has historically lagged coastal markets. The Midwest is home to major research universities that generate medical technology intellectual property.
VI’s investment thesis centers on identifying university research with commercial potential and supporting the transition from laboratory to market. Kelly Sexton, Associate Vice President for Research – Innovation Partnerships and Economic Impact at the University of Michigan, noted in the announcement that the firm “has consistently helped accelerate lab discoveries into tangible patient outcomes.”
The fund’s healthcare-only focus differentiates it from generalist venture firms. The firm states it provides portfolio companies with advisory networks and due diligence capabilities across multiple healthcare sectors, leveraging decades of specialized experience in the region.
