Early-stage VC HealthQuad raises $21m so far for second healthcare fund

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HealthQuad, a New Delhi-based early-stage venture capital firm, has raised an initial $21 million for its latest healthcare-focused fund, according to its filing with the US Securities and Exchange Commission.

HealthQuad Fund II, which has a target of $73.4 million, received commitments from three investors so far since its first sale in June, the firm said. The first fund had hit the final close at $12 million in June 2017.

HealthQuad was founded in 2016 by the co-founders of Singapore-based healthcare-focused private equity firm Quadria Capital, Amit Varma and Abrar Mir, in partnership with Belgium-based Kois Invest. It was formed as the venture capital arm to capture opportunities in the healthcare sector at an early stage.

The firm said it seeks to invest in early-stage technology-enabled or thematic healthcare ventures in their commercialisation and expansion stages, with a focus on healthcare delivery services, life sciences, medical devices and technology, healthcare IT, and associated healthcare services.

Apart from being able to invest in more companies, the larger fund will also give HealthQuad the headroom to cut larger cheques and bigger follow on rounds for its portfolio companies.

On an average, the fund has been investing around $2-3 million per deal. With the new fund, HealthQuad will be able to invest up to $9-10 million, Pinak Shrikhande, Principal at Healthquad, earlier told DealStreetAsia.

HealthQuad currently has seven companies under its portfolio – Medikabazaar, an online B2B platform for doctors and hospitals; Strand, a specialised diagnostic company; Technology Healthcare Big Data Analytics, a data analytics and intelligence platform; Asian Institute of Nephrology and Urology, a renal-care focused tertiary care hospital; Neurosynaptic Communications, a telemedicine solution provider; hospital group Regency Healthcare, and Hi Impact Consultant, a healthcare staffing company.

Besides HealthQuad, founders Mir and Varma also run a healthcare-focused private equity fund Quadria Capital, which closed its second fund at $595 million early this year.

While private equity firm Quadria and HealthQuad have common promoters and operate in the healthcare space, both platforms operate as separate entities.

Quadria Capital concentrates on growth-stage companies in the sector across South Asia and Southeast Asia, while HealthQuad is focused on early-stage firms in India.

According to venture capital data tracker Tracxn, healthtech startups in India went up to $940 million in 2019, a significant rise from $586 million in 2019. The last quarter was the best with $436 million being raised.

However, this year saw sharp fall in the country’s healthtech funding, with just $72 million raised in the first quarter and another $103 million in the second quarter.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.