NCN, Health Care Council Release Updated VC Investment Report
By CINDY SANDERS
A new report released last month by Nashville Capital Network (NCN) and the Nashville Health Care Council highlighted robust venture capital activity with more than $1.6 billion invested in local companies over the past decade.
"Nashville Venture Capital Report: 2005-2015" found more than 300 different Nashville-based companies received venture capital investment during the 10-year timeframe with healthcare leading the way. More than $940 million of the $1.6 billion, almost 60 percent of the total, was invested in Nashville healthcare companies.
"This data highlights the evolving venture capital environment in Nashville and illustrates the important role that VC and healthcare play in making Nashville an elite city for entrepreneurship," said Sid Chambless, executive director and managing partner of NCN
Chambless continued, "Over the past several years, regional and national venture capital firms have shown an increased willingness to invest in the growth rounds of Nashville companies. Numerous firms that previously had not invested in Nashville appeared in the most recent years of the data. We believe that interest in Nashville-based companies will continue in the coming years."
Key findings included:
"We are particularly interested to see the tremendous investment growth in the healthcare IT space - $62.5 million in 2015 alone, up from $2 million in 2009," said Nashville Health Care Council President Hayley Hovious. "This tells us that investors see great potential for solutions in HIT."
Chambless noted, "Many traditional healthcare services operators are finding ways to deliver care more efficiently, effectively, and with better outcomes by leveraging technology. New business models are being developed, and this is resulting in increased investment in Health IT locally."
The VC report comes amid numerous national accolades for the city and its business climate. Forbes has routinely sung Music City's praises, including an article on Aug. 24 lauding Nashville as one of America's 'hottest spots' for tech jobs. In July, CBRE Group, Inc.'s annual report, "Scoring Tech Talent," ranked Nashville second in the nation for growth of highly skilled tech workers. And in June, Nashville was named a top city for startup growth in the 2016 Kauffman Report. This year's ranking at number five was a four spot leap from 2015, when Kauffman ranked Nashville ninth in the nation.
The continuing buzz around Nashville's entrepreneurial climate led by the healthcare industry bodes well for additional investment. "Nashville is well positioned to capitalize on its deep healthcare expertise to innovate and create the future of healthcare," Hovious concluded.
To take a deeper dive into the "Nashville Venture Capital Report 2005-2015," access the full report online through NCN's website at nashvillecapital.com.