The firm is Blood, Sweat & Capital LLC, a Texas shop focused on the healthcare services space.
“We met with a lot of healthcare executives when we were setting things up, and one of them mentioned that we should run a name contest through the Internet,” says Pat Abele, a BS&T partner who has served as CEO for both New West Health Service and the Catholic Health Care Network. “There were probably a thousand different names submitted, and Blood Sweat & Capital really resonated with us. Maybe it’s because of our ages, or maybe it’s because we’re putting lots and lots of sweat in along with our money.”
The firm was founded about six months ago, and looks to invest between $1 and $2 million in healthcare services startups. That sounds more VC-ish than PE-ish (at least with PE=buyout for so many), but Abele says that BS&C plans to be more operationally involved than the typical VC firm. Specifically, its four partners will work fulltime in various portfolio company roles (CEO, CIO, CMO, etc.) while the startups recruit outside managers.
The firm is not yet identifying any of its portfolio company names, although Abele disclosed that BS&C investments includie an electronic medical records company, and interoperability startup and a company that helps patients finance elective surgery and deductibles.
BS&C is currently investing its partners’ money, and seems undecided on raising a formal fund. “We’ve gotten requests from people who want to put money to work with us, but we have plenty of money internally to do what we want to do right now,” Abele explains. “We’re not looking for major homeruns — just really good ideas with really good entrepreneurs behind them.”