LRVHealth amasses $200m for ‘care anywhere’ theme

LRVHealth has raised $200 million for its fifth fund, which will focus on the shift of medical care out of acute care settings, a theme it describes as “care anywhere.”

The Boston-based firm did not disclose the names of its LPs, but said its investors include “29 of the country’s leading healthcare providers, payers and vendors.”

The new fund is the largest the firm has raised since it was founded in 2000. It previously raised $102.5 million for its fourth fund in June 2020. Fundraising for its fifth fund began in February 2022, according to Venture Capital Journal research.

“We’re entering a second wave of digital health innovation that will be defined by a fundamental transformation in how and where care is delivered, driven by clinical scarcity, and enabled by advancements in technology – from artificial intelligence and machine learning, to sensors, optics, robotics and more,” managing partner Keith Figlioli said in a statement.

“Care Anywhere is about delivering preventative, personalized and seamless care where, when and how consumers want it. Working with the healthcare incumbents in our strategic network as an extension of their operating teams, we’ll identify investment areas within this construct, and create opportunities for unique partnerships with the entrepreneurs addressing them, just as we’ve been doing for more than two decades.”

The fund’s initial investments include Greater Good Health, a company centered around nurse practitioners, and KeyCare, a virtual-first care platform built with Epic.

In addition to the fundraising, LRVHealth recently hired Josh Flum, a former chief strategy officer at CVS Health, as a managing partner.

LRVHealth’s fundraising success comes as VCs face a daunting fundraising market. In the first quarter, managers worldwide were only able to raise a combined $26.7 billion, less than half of the amount they raised in Q1 for each of the two previous years, according to Venture Capital Journal’s exclusive research. The dollar amount was the lowest figure since the first quarter of 2019, when VCs around the globe collected a combined $24 billion.

Even more troubling is the small number of funds (88) that closed in Q1. If that pace continues, the total number of funds for the full year will come in at just about 350 – down from 785 in 2022 and a record 1,252 in 2021. The last time that venture firms closed on 350 or fewer funds was 2010.