Israel Healthcare Ventures Raises $100 Million for Second Fund

Extis from first fund include Syneron, Medigus and ColBar

Guy Grimland
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Guy Grimland

Israel Healthcare Ventures has closed its fundraising for a second venture capital fund, securing $100 million in pledges in net terms. If needed, the fund run by Dr Hadar Ron can raise more for new investments.

Several months ago TheMarker reported that Ron was thinking of raising between $100 million to $120 million for a sequel fund.

The new fund has already invested in two companies: D-Pharm and Gamida Cell.

The first IHCV fund was considered highly successful, even by international terms, having returned more than $100 million to investors.

The fund had several tens of millions of dollars in capital and boasted two major exits. One was medical-technology company Syneron (TASE, Nasdaq: ELOS)  in which IHCV had placed $1.5 million, and sold its holdings in full for more than $80 million.

The second was ColBar, a biomaterials company specializing in reconstructive medicine and tissue engineering, which Johnson & Johnson bought for $159 million. IHCV had owned 10% of ColBar and received five times its original investment inside a year and a half.

Another exit was Medigus, which makes endoscopy technology to treat GERD - gastro esophageal reflux disease, a very common chronic disease. Medigus went public on the Tel Aviv Stock Exchange.

When mulling the future of a new fund, Ron, 46, considered aiming for as much as $400 million. But she ultimately decided to stick with her original plan.