Germany-based Early Bird Health has announced the final completion of its second fund of €173 million (approximately $185 million). This is more than double the size of Early Bird's first dedicated healthcare fund, Health I, which reached €85 million at final close.
While the funds are similar in investment theme and stage, this will allow Early Bird Health to write bigger checks. The company plans to invest primarily in Europe, including the UK, which could be good news for health tech startups in the region, many of which have been left cash-strapped by the collapse of telemedicine company Babylon. .
But there is much more to improving health and patient outcomes than digitization. Earlybird Health's focus spans medical devices, diagnostic solutions, research and development tools, and biopharmaceuticals. The latter has already delivered Early Bird Health's first fund IPO when eye care company Oculis goes public on the Nasdaq in March 2023.
Earlybird Health's existing portfolio also includes Priothera, whose co-founder Florent Gros joined the fund as a partner in 2022.
Another newcomer to the world of Earlybird Health is limited partner British Patient Capital, a subsidiary of state-owned British Business Bank. This joins various LPs including BARMER, one of his largest public health insurance providers in Germany. When he backed Health I, Earlybird Health said it was the first such insurance company to invest in a VC fund.
“Having health payers as core investors allows us to understand and address key patient needs by supporting innovative care,” said Tom, Partner at Earlybird Health.・Lash said.
Rush said that for portfolio companies, this type of LP also opens the door to “insight into the most promising commercialization angles and potential direct support,” adding that BARMER and portfolio company iSTAR Medical, He cited collaboration with Noscendo and Wellabe.
Earlybird Health has its own team of 10 people and also has access to Eagle Eye. Eagle Eye is an in-house AI tool shared across Earlybird and other independently managed funds. From stealth mode company discovery to other opportunities, Early Bird Health President Christoph Massner expects this to help make the fund's deal sourcing and due diligence process more efficient and comprehensive.
Inclusion is part of the ESG goals that Earlybird Health has committed to and is detailed in our first Impact and ESG Report for 2022. As an Article 8 fund under the EU's Sustainable Finance Disclosure Regulation (SFDR), these initiatives are a “core part” of its day-to-day activities, “whether it's investments or general operations,” says partner Lionel Carnot. he said. Prior to the release of the fund's 2023 report, it was revealed that as a result of the fund's promotion, two portfolio companies had also “formulated and implemented ESG strategies in 2023.”