USA – Nashville-based Jumpstart Nova has announced its first venture fund, with US$55 million to invest exclusively in Black founder-led healthcare companies.
Nearly 100 investors participated in the round, including Eli Lilly and Company, HCA Healthcare, Cardinal Health, Meharry Medical College, Vanderbilt University, American Hospital Association, and others.
Despite the fact that Jumpstart is based in Tennessee, the Nova fund will have roots in Los Angeles as well.
Kathryne Cooper, a Jumpstart Nova partner and native Angeleno, is based in Los Angeles and works alongside Jumpstart co-founder Marcus Whitney to lead deals and manage the portfolio.
According to a press release, the fund will invest in companies in health IT, digital health, tech-enabled services, diagnostic devices, biotech, medical device manufacturing, and consumer health and wellness.
Marcus Whitney is the company’s founder and Managing Partner. He was inspired to create Jumpstart Nova as a solution to a critical market gap he identified.
Jumpstart Nova is the most recent addition to JHI’s family of funds, which he co-founded with Vic Gatto in Nashville in 2015.
According to the company, Jumpstart Nova is working to increase equity in the healthcare venture space by maintaining majority Black-owned general partners, increasing the number of Black VC limited partners and VC professionals, generating great returns, and investing in Black founders and leaders at the forefront of healthcare innovation.
The fund’s initial portfolio companies are addressing healthcare issues such as equitable access to clinical trials, bringing novel cell and gene therapies to market, assisting families with autistic children in receiving therapeutic support, and attempting to reduce the risk of life-threatening food allergy attacks, Whitney said.
Jumpstart Nova enables leaders in the health care industry focused on innovation to invest in talented Black health care founders.
Only 35,000 businesses in the health care and social assistance sector are Black or African American-owned, accounting for less than 5% of the nearly 785,000 companies in the U.S. health care sector today.
According to Whitney, the fund’s initial portfolio companies are addressing healthcare issues such as equitable access to clinical trials, bringing novel cell and gene therapies to market, assisting families with autistic children in receiving therapeutic support, and attempting to reduce the risk of life-threatening food allergy attacks.
Companies that qualify for Seed or Series A investment will have at least one Black founder in a C-level position and on the board.
Check sizes will typically range from US$0.25 million to US$3 million and the fund will frequently lead rounds, in which case a board seat will be required. Its investments will primarily be in the form of minority stakes.
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