Over the past decade, large health systems such as Mayo Clinic, caesar forever and promote Has been launching an internal investment fund to support healthcare startups transforming the way healthcare is delivered. Pennsylvania Medicine Launched in the party last August Penn Medicine-Wharton Health Fund and Wharton Social Impact Programthe University of Pennsylvania School of Business strives to increase social change in business.
Last week, the fund Announce investment in its fifth and sixth companies, fabric health and Stimulatebringing the fund’s total invested capital to $1.35 million.
The Penn Medicine-Wharton Fund for Health was established to invest in early-stage companies seeking to positively impact the social determinants of health in and around Philadelphia. It also aims to provide Penn students with experiential learning opportunities for impact investing, said Brandon Grant, co-director of the fund.
In Grant’s view, the investment fund differs from other health system investment funds because its investment thesis is entirely focused on improving the social determinants of health in the community. The fund is also unique because its investment team is made up of Penn students across disciplines, he said. Their task is to procure companies and perform due diligence on them.
Fabric Health is one of the companies these students have recently chosen to invest in. The startup works with laundromats and partners developing health plans to increase healthcare access in low-income communities.The startup is headquartered in Philadelphia, but also has operations in Pittsburgh and Washington, D.C.
“Understanding that access to healthcare is a huge barrier to access to quality care has led this fund to invest in Fabric Health’s innovative approach,” Grant said. “Their solution to reducing barriers to quality care by having team members work with health insurers to provide a variety of screening and preventive care while people wait for their clothes to dry is very appealing.”
Stimulus is another company the fund has recently invested in.The Philadelphia-based startup Sell software to doctors to help them make the buying process more transparent and efficient. Grant said the fund was attracted to companies because it seeks to restructure capital flows and direct contracts to underserved communities through inclusive sourcing and procurement decisions.
Four other companies the Penn Medicine-Wharton Fund for Health has previously invested in include: up trusta customer relationship management tool that helps keep people out of the criminal justice system; relatedwhich is developing communications software to reduce absenteeism in underserved schools; restore linka telehealth platform seeking to increase substance use recovery and peer support services; and LulaConvenience store delivery solutions.
The fund’s investments in Fabric Health and Stimulus represent 37% of its total since inception — $1.35 million. Grant said the fund plans to invest up to $5 million over three years.
The work the Penn Medicine-Wharton Fund for Health is doing to alleviate health disparities in Philadelphia has also caught the attention of some outside investors. For example, Josh Harris, managing partner of the Philadelphia 76ers, June says He and his wife Marjorie will invest $1 million in companies selected by the fund.
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