Investment Focus
Health Cloud Capital Fund I, LP is focused exclusively on providing growth capital to proven cloud-based companies that benefit from A) the consumerization of healthcare and B) the rapid re-platforming of healthcare IT into the cloud. Particular emphasis will be on companies having strategic synergies with the Fund’s first platform investment, hc1.com.
Why Healthcare?
(a huge, dynamic, and underserved market)
Healthcare spending comprises 18% of the total US economy ($3.2 trillion), approximately 5% of which ($155B) is spent on investment in business infrastructure as the industry responds to disruptive consumerization trends. Yet only 10% of private equity investments are in the healthcare IT sector, and only 2% of PE capital is invested in deals smaller than $25M.
Why the Cloud?
(healthcare is aggressively “re-platforming” on the cloud)
The healthcare cloud computing market is expected to reach $9.5B by 2020, up from $1B in 2011, a 28% CAGR. The U.S. Dept. of Health and Human Services has increased adoption of cloud services from 1% in 2015 to over 30% by the end of 2017. Adoption of cloud computing is a prerequisite to the transformation of healthcare from fee-for-service toward a value-based delivery model. Healthcare entities have no choice but to embrace the cloud over the next 10 years, in the same way that most other industries have already done.
These macroeconomic trends, combined with over 50 years collective private equity, healthcare, and technology experience among the Fund’s principals, will drive a well above-market return opportunity for investors.
