$50M Fund Established for Digitizing the Healthcare Industry
To work towards modernizing the healthcare industry, San Ramon, Calif.-based investment banking firm MergerTech Capital has established a $50 million investment fund.
The fund will help the healthcare industry work towards “IT infrastructure associated with healthcare, including cloud services, data security, consumer Internet, mobile applications, and managed IT.” The fund will also invest in healthcare service providers that use technology to reduce cost, scale or delivery gaps.
Devin Coldewey, a contributor to techcrunch.com, has worked in the healthcare industry and says he can attest to the amount of faxing, making of carbon copies and redundancy that exists in the field overall.
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The fund will be led by Maneesh Goyal, who worked previously at Miramar Ventures where for five years he led healthcare IT investments. He stated, “The healthcare system as it currently stands is antiquated, one that needs to be redesigned. Technology is the only tool that creates efficiency in these types of inefficient systems. MergerTech Capital believes that investing in this space has the double benefit of large returns and positive societal impact."
The healthcare information technology industry is rapidly developing and estimated to be worth $40 billion, and over the next five to 10 years, growth is forecasted at 24 percent.
