In this new series, Digital Health Business & Technology will interview a range of digital health investors, from those who work at venture capital firms and at health system and health insurance venture funds, to individual and angel investors. If you’re interested in participating in this series, email us here.
Scott Kolesar, co-founder and managing director at venture capital firm Caduceus Capital Partners, has worked in healthcare for more than three decades. In September 2020, he and a partner started a new venture firm with a narrow focus on digital health.
“We’re looking at companies that are not trying to boil the ocean with one big, platform solution but rather have solutions that can be immediately deployed with near-term value and can fully integrate,” Kolesar said. “A good 30% of the companies we look at are a hammer looking for a nail, and, you know, we have very short conversations with those companies.”
Kolesar remains bullish because healthcare spends continue to climb as a proportion of gross domestic product. While investments have begun to slow, Kolesar said the market is cyclical and is confident digital health is here to stay. He spoke with Digital Health Business & Technology about Caduceus Capital’s plan to navigate a broader market correction. The company is in the midst of raising $100 million funding focused on early-stage digital health. The interview has been edited for length and clarity.