Germany-based Earlybird Health announced the closing of its second fund of €173 million (around $185 million). This second fund is more than double the size of Earlybird’s first healthcare-focused fund, Health I, which closed at €85 million.
While the focus of both funds is similar, the larger fund size will allow Earlybird Health to make larger investments. Since the fund plans to primarily invest in Europe, this news could be a positive development for healthtech startups in the region, especially after the difficulties faced by many due to the fall of telehealth company Babylon.
But Earlybird Health’s focus is not just limited to digitalization; it also includes medical devices, diagnostics solutions, R&D tools, and biopharma. Notably, an earlier investment in Oculis led to an IPO on NASDAQ.
Furthermore, the portfolio of Earlybird Health includes Priothera, whose co-founder has joined the fund as a partner. Additionally, the fund has welcomed British Patient Capital as a limited partner, along with other noteworthy investors.
Earlybird Health regards the participation of health insurers as a crucial aspect, enabling them to understand and address key patient needs by supporting innovative healthcare. This also opens avenues for insights and potential endorsements for portfolio companies.
The fund also emphasizes inclusivity and sustainability, as evidenced by its commitment to ESG goals. It is an article 8 fund under the EU’s Sustainable Finance Disclosure Regulation, integrating ESG considerations within its investment and operational activities.
