In this week’s edition of InnovationRx, we explore the partnership between Khosla Ventures and Cleveland Clinic, Town Hall Ventures’ $440 million fundraising, the CDC’s “Friday night massacre,” Boehringer’s new pulmonary fibrosis drug, and more. Sign up to receive it directly in your inbox.
New technologies are revolutionizing hospital operations. To gain a competitive advantage, Khosla Ventures and Cleveland Clinic have joined forces in a groundbreaking deal. The partnership will involve the health system testing AI, digital health, and next-gen therapeutics from Khosla Ventures’ portfolio companies. They will also explore opportunities to incubate new companies together.
“I think this is a unique approach,” said Hal Paz, Khosla Ventures’ operating partner.
The agreement, announced at Cleveland Clinic’s Life Sciences Summit in London, follows a year of discussions. Khosla Ventures, a renowned VC firm with a focus on healthcare, sees Cleveland Clinic as a valuable partner for testing and adopting new technologies. On the other hand, Cleveland Clinic, a respected non-profit health system, gains access to cutting-edge innovations that could enhance patient care and operational efficiency.
Already, around 10 to 12 of Khosla’s portfolio companies are in talks with Cleveland Clinic for potential collaboration. One such company, Vista AI, is already working with Cleveland Clinic to automate and simplify cardiac MRIs. The partnership aims to increase the number of scans done on a single machine with improved quality and consistency.
The healthcare industry is at an inflection point, with transformative technologies emerging to address longstanding challenges. The Khosla Ventures-Cleveland Clinic partnership reflects a growing trend of tech-based venture firms venturing into healthcare to drive innovation and improve outcomes.
For both Khosla and Cleveland Clinic, this partnership marks the beginning of a potentially fruitful collaboration. However, both parties acknowledge the need to focus on their current initiatives before exploring additional partnerships.
In a separate development, former Medicare Administrator Andy Slavitt has raised $440 million for Town Hall Ventures, a healthcare-focused VC firm. Slavitt aims to use technology to improve healthcare for underserved and low-income communities while delivering profitable returns. Town Hall Ventures has a successful track record, with several investments achieving billion-dollar valuations.
The firm’s latest fundraising round brings its total assets under management to $1.4 billion, highlighting its commitment to driving innovation and impact in the healthcare sector. Although the New York-based firm is smaller compared to venture capital giants like Andreessen Horowitz, General Catalyst, or Sequoia, it is highly respected in the healthcare industry. The agreement among states entails collaboration in preparing for pandemics, monitoring infectious diseases, drafting public health guidelines, exchanging expertise on preventive care, and collectively procuring vaccines and supplies. Please rewrite this sentence for me.
