Yes, it's the beginning of March and it snowed 8" this week in Minnesota. But Daylight Savings Time is this weekend... so we're declaring an early spring here at Capita3!
As of this writing, we're headed to the premier conference South by Southwest - SXSW - in Austin TX ☀️ and we're buzzing with excitement and genuine hope for the future of health innovation. This is our first time attending, and it will be a whirlwind, with dozens of meetings and events lined up. We'll share more on that later.
2025 is already off to a great start, with groundbreaking advancements lighting up the industry. Together, let's make this year a landmark on the journey towards an awe-inspiring healthcare system for all.
Key Sector Trends for 2025
We've moved squarely into care at home, and beyond telehealth-only visits. Remote patient monitoring advancements are key, along with moving beyond point solutions to more complete care solutions. Since Capita3's start in 2019, we have invested in companies driving this evolution, including Marani Health, Zerigo Health, and Gabbi. Here are related developments and trends we anticipate in 2025:
Telemedicine and remote monitoring are becoming standard practice
Access to care is improving through telehealth and technology advances
Patient Health Empowerment: through digital tools, wearables, and apps.
AI Precision Medicine Advances: enhancements in diagnostic accuracy.
AI-Driven Genomics: and next-gen imaging are making strides
These advancements are tailwinds for our intention to get out in front of the disease state to Personalization, Prediction, and Prevention, and AI is a game changer and critical enabler here.
In other developments, mental health awareness and the related sectors strengthen as innovators find new ways to provide simple, effective solutions. We capitalized on this trend withCapita3 Portfolio Company EmpowerU, acquired by FullBloom in 2023, and we are evaluating new ideas and next gen approaches.
Biotech Breakthroughs: We are seeing a surge in revolutionary biotech startups; from gene editing to personalized therapies, these innovations are pushing boundaries for new possibilities in medicine
New Federal Policies & Impacts
As we move through Q1, we are seeing many changes to policies and new positions from the new Administration, and we are paying close attention to potential impacts on our companies and future investments. Recent topics include:
DEI: this topic has thrown many into a tailspin, with some federal funding in jeopardy if providers maintain diversity, equity, and inclusion (DEI) programs
Reducing federal workforce: Streamlining operations is a noble goal; in time we will see the potential impacts on healthcare access and FDA regulation, among other areas of the economy,
NIH cuts in overhead budget: in response to the Administration calls for reducing the federal workforce and overall budget, in January the NIH announced a reduction in allowable overhead from the common 50% rate to 15%; this change has been blocked by a federal judge to provide time to evaluate the implications of this change on the research infrastructure required for new and continued breakthroughs in health and medicine.
Capita3 News
In Q1, Capita3 invested in Carallel and Paterna; see below to learn more.
Caregiver support is one of the largest markets in the word. Please see our piece on this market here.
Our last investment in 2024 was into Gabbi. See our announcement here. We invested alongside Catalyst by Wellstar, Healthworx, Bread & Butter and others. Catalyst is the venture arm of Wellstar, one of the largest providers in Georgia. Healthworx is a strategic initiative from CareFirst, the largest commercial care company in Maryland.
Paterna Bioscience is a biotech company focused on the rapidly growing $20B+ infertility market. Paterna's lead product is focused on male infertility, a market estimated at $4B and poised to grow rapidly as new male fertility solutions such Paterna's enter the market. See our announcement here.
Capita3's Ecosystem
Recent Events
We continue expanding our community and network of healthcare experts, syndication partners, and institutional investors through speaking engagements and events.
