SwissHealth Ventures doubles fund volume to CHF 100 million

SwissHealth Ventures, the corporate VC arm of health insurer CSS, invests in high-growth start-ups that are advancing healthcare with digital technologies. It particularly promotes solutions that create sustainable added value for health insurers and their customers.

Thanks to the support of CSS, the SwissHealth Ventures digital health fund has now doubled its volume from CHF 50 million to CHF 100 million. The additional funds will enable around twelve further start-up investments in the coming years. SwissHealth Ventures operates with an evergreen structure, which means that the returns flow back into the fund and are available for further investments.

SwissHealth Ventures plans to use the fresh funds to invest in two to three new digital health start-ups each year. It will invest jointly with other European venture capitalists with the aim of supporting the start-ups in their market entry in Switzerland through the health insurance company’s expertise and network. “We believe that the digital health sector will grow at an even faster pace in the coming years and is set to become even more attractive within the healthcare industry. Technological innovations, AI and the trend towards outpatient treatment are contributing significantly to this,” explains Jonathan Fraser, Head of Corporate Venturing, SwissHealth Ventures. This represents a strategic opportunity for CSS: it gains early access to leading start-ups and innovative solutions that can be integrated into its offerings.

SwissHealth Ventures has invested in twelve companies to date – four of them from Switzerland – and two digital health funds. The results are impressive: the twelve existing portfolio companies have created over 3,200 jobs and are financially successful. ‘More than 330,000 CSS members have already used one of their services, giving them access to innovations that improve their lives and make the healthcare system more sustainable,’ explains Fraser. One example is Flow Neuroscience from Sweden: CSS was the first health insurance company worldwide to reimburse Flow’s new therapy for the treatment of depression, which is already being used in 16 Swiss clinics today.

SwissHealth Ventures invests in digital business models in the healthcare sector in a growth phase with a monthly turnover of approximately CHF 100,000 or more. In addition to start-ups that offer effective benefits for CSS policyholders, companies that make the healthcare system more efficient are also eligible. A good example is Lyfegen from Basel. Jonathan Fraser says: ‘This platform helps us negotiate fair prices with pharmaceutical companies. This year alone, we have saved CHF 3.5 million as a result.’

(Laura Farese / Stefan Kyora)
Photo L-R: Markus Rommel, Marc Dietrich, Jonathan Fraser, Daniel Alzer