*UPDATE: SoCal Health Fund Reaches Its 25th Investment. Wavemaker Three-Sixty Health Made These Investments in Less Than 18 Months…
A SoCal healthcare fund completed its 25th investment last week, all done in less than 18 months.
Wavemaker Three-Sixty Health — led by John Nackel, Jay Goss, Eric Marton and Kwame Ulmer — told OC Startups Now that the milestone makes Wavemaker “one of the most active healthcare venture investors in the country, and certainly the most active in the LA region.”
SoCal remains its most active geography for investing, with NorCal being second and the rest of the country third.
The fund, which started at $25 million, launched in Q2 2018 and made its first investment in July of that year. See related article here.
Along the way, Wavemaker 360 has also grown its limited partners roster from about 30 to more than 75, with the majority being healthcare executives.
This gives “the company a leg up when it comes to sourcing high-quality, early-stage healthcare company investment opportunities, vetting those opportunities (the firm leans on its LPs’ expertise), and commercially supporting the companies in which it invests,” Goss said.
The venture fund, with HQ in Pasadena, proactively looks for companies in OC and LA, It will also invest in early-stage healthcare companies from around the country, if they meet its investment criteria, which focuses on the healthcare industry’s transition from fee-for-service to value-based health. The fund primarily invests in early-stage companies – with a pre-money valuation of under $10 million – that need help with a pilot project or getting their first few customers.
The fund’s formula is to invest a certain amount upfront, and reserve four times that amount for a follow-on investment.