Eight Roads Ventures has launched its first dedicated China healthcare fund in a move that reflects continued focus of healthcare investments by Chinese venture investors.
The US$250 million Eight Roads China Healthcare Fund came after four earlier Eight Roads China funds also with a strong healthcare focus. The decision to establish a specialized fund reflects the size of the market opportunity in China, the firm said in an announcement today.
The new fund will concentrate on four investment areas: therapeutics, healthcare services, healthcare IT and digital health, and medical technology. Around 40% of the fund’s allocation will be in therapeutics. A dedicated Eight Roads China technology fund is also in the pipeline.
The opportunity in China healthcare is being driven by an ageing population, increasing patient demands, the yet-to-improved healthcare payment system, and ambitious policy reforms supported by the Chinese Government.
Eight Roads invests not only in existing companies but will continue to found new ventures to tackle unmet market demand, and intransigent health and delivery issues. Its patient capital approach is suited to the long development times for healthcare companies, especially in therapeutics.
“Eight Roads has backed innovative China healthcare companies since 1995. The launch of this specialized fund reflects our confidence in the evolution of the China market and forms part of a strategy to more precisely target our healthcare and technology expertise,” said Daniel Auerbach, senior managing partner Asia of Eight Roads.
The Eight Roads healthcare team includes individuals who have been investing in China for decades alongside scientists, clinicians, business builders and operators with years of working in Sino-American multinationals.
In the past 22 years, Eight Roads has invested in more than 100 healthcare companies, over 30 of which are in China. These investments include drug discovery and development firms such as WuXi AppTec, Hua Medicine, Adagene, and biologic manufacturing companies such as Innovent.
Its portfolio also include medical services such as DeltaHealth, Bang Er Orthopedic Hospital, Gushengtang and innovative services that improve the efficiency of medical payment and clinical care such as Wanhu Health, Medbanks.