Schneider Children's Medical Center Launches $50 Million Pediatric Health Venture Fund
Translated & summarized from Calcalist by baba
Schneider Children's Medical Center, part of Clalit Health Services, has launched SCVC, an investment fund focused on pediatric healthcare innovation, aiming to raise $50 million. The fund has already secured $20 million and invested in three companies. Managing Partner Ronen Gadot highlighted the need for dedicated pediatric innovation and the fund's unique access to clinical data and settings. SCVC aims to develop "Tech-Ped" solutions specifically for children, shifting towards proactive healthcare.
The story in 5 lines · by baba
- Schneider Children's Medical Center launched a $50 million venture fund for pediatric health innovation.
- The fund, SCVC, has already raised $20 million and invested in three companies.
- SCVC is Israel's first investment fund dedicated exclusively to pediatric medicine.
- The fund aims to develop "Tech-Ped" solutions tailored for children's health needs.
- SCVC leverages access to Schneider Hospital's clinical settings and Clalit's data.
Schneider Children's Medical Center, part of the Clalit Health Services group, has established SCVC (Schneider Children's VC), an investment fund focused on innovation in pediatric healthcare. The fund has already secured approximately $20 million in initial closing, enabling it to begin investing, and aims to raise a total of $50 million. SCVC has made three investments to date, ranging from $500,000 to $3 million each. Anchor investors include Schneider, Clalit, the Dor Group, and Ronen Gadot, the fund's managing partner.
Gadot stated that the fund was created out of a need within pediatric medicine, recognizing significant economic potential and aiming to advance the field. He noted that SCVC is the first fund in Israel dedicated to pediatric medicine, with only two similar funds operating globally in Boston and Barcelona. Gadot highlighted that a small fraction of life science investments are directed towards pediatrics, presenting a substantial opportunity for both business and health sectors. The fund is also pursuing collaborations with major technology companies in data and AI for early disease detection.
Gadot, a former pilot with prior experience in medical innovation and establishing Philips' innovation fund, also cited personal motivation. "I am the father of a child with a rare genetic disease and see the need for medical innovation in this world. For me, this is a dream come true," he said. Although an external entity, the fund is backed by Schneider Hospital and Clalit, providing access to clinical settings for technology evaluation and Clalit's data.
Operations commenced in February following an agreement with Clalit. Since then, the fund has reviewed about 170 companies, selecting three for investment. This model allows the fund to assess teams and products in a clinical environment before investing, and subsequently assist companies with development, business models, and market entry. The fund anticipates that its connection to the healthcare system reduces investment risk and balances medical value creation with returns for investors and the healthcare system.
The fund's establishment also stems from the understanding that early intervention can prevent adult-onset diseases. While children constitute about 30% of Israel's population, many pediatric treatments were originally developed for adults. Schneider aims to promote "Tech-Ped," innovation designed specifically for children, rather than adapting adult solutions. The goal is a shift from preventive to proactive medicine, identifying diseases and risk factors before symptoms appear, potentially avoiding future medical interventions. This approach is based on the continuum from childhood through adolescence to young adulthood, and the belief that many physical and mental health issues in later life originate in childhood.