A partnership between ISA Ventures and managed care nonprofit CareSource is creating an investment fund for startups to improve health care outcomes.
The Ohio-based organization will invest $2 million in the CareSource Iowa Opportunity Investment fund, with individual investments of as much as $500,000, according to a release. The fund is dedicated to providing capital for Iowa-based startups that seek to improve health care outcomes and promote health equity, especially for underserved populations and those with complex care needs.
“This is a big step forward for Iowa’s startup ecosystem, bringing more resources – not just capital, but also the expertise that a national leader like CareSource has – to entrepreneurs in Iowa,” said Eric Engelmann, ISA Ventures’ general partner, in a statement. “These investments will create new jobs and opportunities for Iowans, while also making an impact on our state’s vulnerable populations.”
ISA Ventures, a venture capital studio, will source and vet companies for consideration, complete due diligence and provide investment recommendations to a CareSource investment committee. The fund will syndicate alongside ISA Ventures’ direct investment and other venture funds.
Companies are eligible to apply to the investment fund if their business solves a large addressable market, their principal place of business is in Iowa, and if the company has a strong leadership team selling a technology-based product.
Selected winners will have access to NewBoCo Studios for support services, a technology perks program, and other support resources.
CareSource will add Iowa as a state where it offers insurance through the Health Care Marketplace in 2023, a spokesperson told the Business Record.
In March, ISA Ventures announced plans to expand into the Quad Cities region.