Our main focus is European companies looking to expand to North America, however we also cooperate with healthcare service ventures in emerging countries. We accept mainly referrals through people we know and have worked with.
- BBCH invests and co-invests between US$250k and $100M in disruptive healthcare ventures. We generally do not take board seats but can in exceptional circumstances lead investment rounds.
- We invest in both early-growth and late-stage ventures (series A and B). We can also seed fund in conjunction with leading institutions.
- We have no time horizon for the investment and employ minimal leverage.
Our partners are all experienced healthcare entrepreneurs, executives, advisors academics or public health officials.
Dysfunctional healthcare system
The U.S. health care system is the most expensive in the world with healthcare expenditures projected to reach a total of US$3.2 trillion in 2015 – equivalent to ~US$10,000 per person per year or 17% of the gross domestic product. However, the U.S. fails to achieve health outcomes similar to those of other OECD countries on counts of accessibility, affordability, and quality of care.
Market size increase with the ACA
The U.S. has a relatively large uninsured population and a limited access to primary care. The Affordable Care Act (ACA) created significant market opportunities for entrepreneurs and corporations to deliver and capture value: it expanded Medicaid healthcare coverage to over 12.3 million Americans and improved access to care by introducing mandatory health insurance.
Major evolution in healthcare needs and utilization
- Chronic diseases are prevalent and constitute the leading cause of death and disability: 133 million Americans (45% of the population) have at least one chronic disease. Chronic diseases account for 75% of the total national health care spending – equivalent to $5,000 worth of spending per person on treatment of chronic disease.
- The population aged 65 years+ is projected to increase to 83.7 million in 2050. It is especially vulnerable to chronic diseases and prone to suffer from multiple conditions. Furthermore, aging drives health care spending on hospitals and long-term care services such as nursing homes, residential care communities or home health agencies.
- The growth of managed care and payment mechanisms employed by insurers and others payers in an attempt to control the rate of health care spending has also a major impact on healthcare utilization.
Disruptive technologies are revolutionizing the practice of medicine
Genome, mobile devices, and digital technologies will transform medical practice from the population-based approach to treating illness to individualized medicine:
- Wireless remote sensors monitor the condition of patients
- New technologies are applied to heart imaging, brain imaging, cancer imaging, and organ printing
- Electronic Health Records and health IT aim to significantly reduce medical errors.
Dynamic healthcare market
The emerging markets’ healthcare industry represents more than $1.3 trillion and is growing at an annual 6.8% rate. Furthermore, the chronic health issues and diseases in the emerging markets are increasingly similar to those in developed markets.
Growing middle class drives demand for healthcare
It is predicted that one-third of all global health expenditure will occur in emerging economies by 2022. Demand for health care services in developing regions is driven by a burgeoning emerging middle class willing to pay for high-quality medical services.active to investors.
Need for private capital and established actors to build capacity and ensure quality
The lack of physicians, nurses, and medical infrastructure in emerging markets creates a supply-demand mismatch. Governments are actively seeking private capital to fund – or established actors from developed countries to carry out – capacity increases and quality improvements. In addition, the fragmentation of the industry across emerging markets makes it attractive to investors.