ImpactAlpha, October 3 — Disparity in health outcomes, life expectancy and deaths are becoming a mounting crisis in the U.S., particularly in underserved communities, which suffer the most, says New York-based Town Hall Ventures. “Our country has an opportunity to transform the lives of people who have been poorly served by the healthcare system,” said Town Hall’s Andy Slavitt, the former head of the Center for Medicaid and Medicare Services during the Obama Administration.
Slavitt in 2018 cofounded Town Hall Ventures alongside David Whelan and Trevor Price to invest in companies working to improve healthcare services, access and the social determinants of health for underserved Americans. The firm has raised $350 million for its third fund to “continue this important work at scale,” said Whelan.
The health fund brings Town Hall Ventures’ total assets under management to over $1 billion. The fund received commitments from institutional investors, family offices, health systems and individual investors. John Doerr, a returning investor who has backed Town Hall Ventures since its inaugural fund, said the firm “has demonstrated that if you build great, meaningful businesses that change people’s lives you can create significant venture capital returns.” Town Hall Ventures’ first two funds raised $115 million and $275 million respectively.
Returns on inclusion
Town Hall Ventures says it has invested or partnered to build 30 companies that have grown to deliver healthcare services to more than 3 million Americans in all 50 states. Half of the firm’s portfolio companies are led by Black, Indigenous, people of color (BIPOC) and women founders and CEOs.
Portfolio companies include Cityblock Health, which is providing value-based care to low-income patients; Unite Us, a tech company working to bridge together health and social services for low-income and vulnerable communities; and Bright Health, an affordable health insurance provider mainly for small businesses and low-income families.