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Vensana Capital, a venture capital firm focused on medical technology, on Wednesday announced its first venture capital fund.
Known as Vensana Capital 1, the $225 million fund has received financial backing from a range of investing institutions, including public pensions, university endowments, foundations, and health systems, Vensana officials said in a news release.
Investment interest has surpassed Vensana’s expectations, resulting in an oversubscribed fund, according to the firm.
“Medtech will continue to play a critical role in the healthcare system of the future, and we are excited to partner with entrepreneurs whose innovations will improve outcomes and lower the cost of care,” said Vensana co-founder Justin Klein.
Klein founded the company this year with Kirk Nielsen. Both have experience in the healthcare investment space: Washington, D.C.-based Klein has worked for venture capital and equity firm New Enterprise Associates, while Minneapolis-based Nielsen serves as managing director for investment company Versant Ventures.
Armed with $225 million, Vensana aims to partner with medtech startups to help progress the clinical development and commercialization of products. The firm plans to target companies working on medical devices, diagnostics and data science, drug delivery, digital health, and tech-enabled services.
Vensana is entering the Twin Cities venture capital game at a time when both the medtech and startup communities are growing rapidly. In fact, more than half of the 10 largest venture capital deals made in Minnesota in 2018 involved healthcare-related companies.
But Vensana will still find plenty of companies looking for cash, as those mega-deals soaked up much of the share of local venture capital.
“Our team aims to be the capital partner of choice for leading medtech entrepreneurs, investors, and strategics,” said Klein in the release. “Together, we share a deep, personal commitment to medtech entrepreneurship and innovation.”
Versant has been a key backer of Vensana from the get-go, helping launch the company and make it ready for its first fund. As Vensana begins investing in medtech companies, Versant will continue to provide strategic advisory, fund administration, and operations support going forward.