US-based venture capital firm B Capital Group, which has backed Indian startups like Byju’s, Meesho and BlackBuck, on Thursday said it has marked the final close of its first healthcare fund.
The fund, closed at $500 million, will invest in healthcare sector, ranging from biotech to digital health.
The fund primarily supports startups in the US, Asia and Europe.
B Capital has backed over 20 companies, including AI-enabled drug discovery company Hotspot Therapeutics, novel cell therapy platform Triumvira and CapitalRX, a tech platform for pharmacy benefits management. Besides, in the medtech space, it has invested in AI-enabled personalized spinal implant company Carlsmed.
“Technological advancements in biology, AI, and automation are transforming the industry, with business models seeing the convergence of traditional players in novel ways. This moment presents a unique opportunity for B Capital to leverage our dedicated healthcare capital and active investment strategy to find and support companies advancing the healthcare sector,” said Robert Mittendorff, general partner and head of healthcare at B Capital.
Founded by Raj Ganguly and Eduardo Saverin in 2014, B Capital closed its second fund at $820 million in 2020. In addition, it raised $126.3 million for a new fund called B Capital Ascent Fund II, LP.
Last month, Ganguly told VCCircle, "The market for growth investing is ripe as the valuations have come down drastically. I expect a 10-15% valuation reduction by the end of this calendar year."
The limited partners in the fund consist of pension funds, family offices, and firms’ partners who have also invested up to 10% of the fund.
Karan Mohla, who had joined B Capital from Indian venture capital firm Chiratae Ventures, is a part of the founding team at Capital Ascent and is tasked with identifying and investing in early-stage, innovative firms in India and Southeast Asia.
Mohla was elevated to General Partner after a year-long stint at the firm as a partner.
B Capital manages $6.3 billion in assets across multiple funds, focusing on venture growth investments from seed to late stages, primarily in the enterprise, financial technology, and healthcare sectors. The firm operates in nine locations in the US and Asia and also has a strategic partnership with Boston Consulting Group (BCG).
In India, B Capital was a lead investor in MoEngage, a SaaS platform that offers insights-based customer engagement. The firm has also made investment in Bizongo, a B2B marketplace for packaging materials.
As the healthcare industry continues to experience technological advancements, B Capital aims to leverage its dedicated healthcare capital and active investment strategy to find and support companies advancing the sector.
