Questa Capital Management, a healthcare-focused venture firm, announced it closed a $397 million venture growth equity fund dubbed Questa Capital III, bringing its total raise to over $1 billion.
Commitments came from blue-chip investors, including endowments, foundations, family offices, pension plans, fund-of-funds and consultants.
WHAT IT DOES
The company’s current portfolio includes:
- in-home care provider DispatchHealth.
- hybrid care provider Cortica, which develops care programs for individuals with autism.
- smart stethoscope company Eko.
- virtual opioid use disorder treatment startup Bicycle Health.
The firm will use the capital to invest in 10 to 14 early-stage companies in the healthcare services, medical device and technology sectors. It will continue to blend elements of growth equity with venture capital, and said it will fund companies working in many of the same focus areas as its prior investments.
“We are extremely pleased to close on Fund III despite a challenging fundraising environment. We are both grateful for the strong interest and ongoing support from our existing investors and pleased to be starting long-term relationships with a small group of exceptional new limited partners,” Questa founder and managing partner Ryan Drant said in a statement.
“We are also energized by the opportunity set we see in the market and look forward to continuing to build differentiated and high-growth healthcare companies in close collaboration with strong management teams.”
MARKET SNAPSHOT
Other venture firms have garnered a large amount of commitments lately.
Define Ventures, whose portfolio consists of well-known early-stage startups in Silicon Valley, received $460 million in Fund III and Opportunities Funds in April.
In July, early-stage venture capital firm Distributed Ventures, born out of NFP Ventures, closed $100 million in total commitments. The Chicago-based firm planned to use the funds to invest in fintech, insurtech and digital health.