Facebook co-founder's VC firm B Capital closes health fund, commits $500 mn

Technological advancements in biology, artificial intelligence, and automation are transforming the healthcare industry, with business models seeing the convergence of traditional players in novel way

B Capital, a venture capital firm set up by Facebook co-founder Eduardo Luiz Saverin and others, has closed the inaugural B Capital Healthcare Fund I. This in conjunction with B Capital Growth Fund III, would allocate over $500 million to opportunities across the healthcare sector, from digital health to biotech. This would be deployed across markets such as the US, India and other parts of Asia, according to the sources.

"Technological advancements in biology, AI (artificial intelligence), and automation are transforming the (healthcare) industry, with business models seeing the convergence of traditional players in novel ways,” said Robert Mittendorff, MD, General Partner and Head of Healthcare at B Capital. “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.”

Dr. Mittendorff joined B Capital in April 2021 to lead Healthcare Fund I and B Capital’s broader healthcare initiatives globally. The firm said the B Capital Healthcare team is focused on deploying capital to category-defining companies that are building breakthrough products and solutions shaping the future of healthcare.

Howard Morgan, Chair and General Partner of B Capital said the firm’s unique value-add approach to global venture and growth investment, including its strategic partnership with Boston Consulting Group (BCG), mainly puts the focus on the founders and management teams. “We are surrounding them with resources they need to transform large markets through innovation and customer-focused solutions,” said Morgan. 

The current B Capital global healthcare portfolio includes over 20 companies in the US, Asia and Europe. These are across early venture to late growth venture. These include areas such as healthtech, digital health, biotech and medtech. The team co-led the latest investment round in Hotspot Therapeutics, an AI-enabled drug discovery company, and led the latest round in Triumvira, a novel cell therapy platform in clinical development. The team also led the latest financing in CapitalRX, a transformative tech platform for pharmacy benefits management. In medtech, the team led the last round in Carlsmed, an AI-enabled personalized spinal implant company.

B Capital, which was founded in 2015, is led by Saverin, Bain Capital veteran Raj Ganguly, Howard Morgan and Sheila Patel. The firm works with technology companies, ranging from seed to late-stage growth, in the enterprise, fintech and healthcare tech sectors.

In January 2023, B Capital announced the close of Growth Fund III and affiliated funds with aggregate capital commitments of approximately $2.1 billion. B Capital’s total assets under management are approximately $6.3 billion.