After announcing a big funding raise, it now appears that one young Nashville health care company is getting some attention from West Coast investors. It was reported recently that health care transparency outfit change:healthcare had raised $6.8 million of an $8 million funding round.
What was not reported in the SEC Form D is the identity of the lead investor in the round. Now, looking at a press release out of San Diego this morning, it appears that a newly launched $100 million investment fund is to thank for a big chunk of that capital raise.
According to the announcement, the fund is designed to “spur the development and adoption of health care innovations specifically focused on making health care more affordable.”
“We are thrilled to be one of the inaugural portfolio companies in the West Health Investment Fund,” change:healthcare President Doug Ghertner said in the release. “Gary and Mary West’s vision to invest so creatively in health care innovation really resonated with us, as we work to create solutions that help consumers make informed decisions about health care and place the power of purchasing directly in their hands.”
As Ghertner’s quote points out, the West Health Innovation Fund is the work of Gary L. West, who along with his wife Mary founded telecommunications heavyweight West Corp.
“We see a void in investment funding focused specifically on lowering the cost of health care. We are launching the West Health Investment Fund to help close that gap and to provide resources to companies who we believe are going to help drive down the cost of health care for the benefit of individuals and society in general,” Gary West said of the fund.
The other companies receiving the inaugural round of funds are San Diego-based diagnostic company Biological Dynamics, San Francisco-based clinical study startup goBalto, Minnesota-based HealthSense, Boston informatics company Humedica and San Deigo-based Sotera Wireless, which provides continuous vital signs monitoring.
Disclosure: change:healthcare is partially funded by Solidus, which has a major investment in NashvillePost.com parent SouthComm.