Council News

August 13, 2013

Investors and CEOs Share Insights on Venture Capital Funding in Health Care

Investors and CEOs Share Insights on Venture Capital Funding in Health Care
by Nashville Health Care Council | Aug 08, 2013

The panel featured investor and CEO combinations, who gave insider perspectives on what makes successful partnerships that accelerate the growth of health care ventures. Panelists included Jim Baker, former director, NeighborMD; Greg Burns, founder and former CEO, NeighborMD; Craig Goguen, president and chief executive officer, DSI Renal and Mohamad Makhzoumi, partner, New Enterprise Associates (NEA). The discussion was moderated by Kevin Lavender, senior vice president and managing director, Fifth Third Bank.

“Nashville’s history of entrepreneurship and access to capital is a primary reason why our health care industry has continued to thrive over the past four decades,” said Caroline Young, president of the Council. “It is important that new and experienced investors alike learn from recent collaborations, and for the health care community to understand the resources that are needed to continue moving in the right direction.”

Last year, the Council and NCN released a comprehensive report on the local venture capital marketplace. The report found that more than $1.4 billion in venture capital funds had been invested in 215 different Nashville-based companies since 2001. Nearly $1 billion of this venture capital money was invested in health care companies.

“There is a large network of health care entrepreneurs and investors in the Nashville community, which has produced numerous highly successful companies. It’s an exciting time to be an innovator in Nashville, and NCN and the Council are dedicated to supporting these partnerships,” said Sid Chambless, executive director of NCN.

View panel member interviews on YouTube and event photos on Flickr.

Photo credit: (c) 2013, Donn Jones.

NeighborMD, an urgent care company, was launched in Nashville in late 2010 and was supported with an investment by NCN’s Angel Group and Tennessee Angel Fund in December 2011. Earlier this year, NeighborMD was acquired by a joint venture between TriStar Health and CareSpot.

“From the early stages of our company, we had tremendous support from our investors which allowed us to execute our strategic vision of building a leading urgent care company in Nashville,” said Greg Burns, former CEO NeighborMD. “In addition to providing capital, our investors were a valuable resource as we considered selling our centers to CareSpot and TriStar.”

Over the past two years, DSI Renal has become one of the fastest-growing dialysis companies in the United States. In 2011, the company was formed with investment support from Frazier Healthcare and New Enterprise Associates. Today, DSI Renal operates 88 dialysis centers in 23 states, providing care to more than 6,500 patients.

“Successful venture investments require innovative ideas and access to funding. NEA strives to partner with entrepreneurs and management teams who have the ability and the vision to transform industries. We believe that the collaboration between NEA and DSI Renal provides unparalleled care to our patients while being at the forefront of innovation in the dialysis community,” Mohamad Makhzoumi, partner, New Enterprise Associates.

Bradley Arant Boult Cummings served as presenting sponsor of the program with Earl Swensson Associates, LBMC Healthcare Services and ReviveHealth as supporting sponsors.

 

About the Nashville Health Care Council

The Nashville Health Care Council, founded in 1995 as an initiative of the Nashville Area Chamber of Commerce, is an association of health care industry leaders working together to further establish Nashville’s position as the nation’s health care industry capital. Worldwide, Nashville’s health care industry generates over 400,000 jobs and more than $70 billion in annual revenue, and is Nashville’s largest and fastest growing employer. For more information on the Council, please visit www.healthcarecouncil.com.

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