News Summary
Cleveland Clinic’s Miller Family Pavilion has formed a strategic partnership with Khosla Ventures to invest in healthcare technology startups. The collaboration includes joint funding and development of innovative solutions using artificial intelligence, therapeutics, and value-based care. Khosla Ventures will lead technical development while Cleveland Clinic manages clinical operations. This partnership builds on previous successful collaborations and aims to enhance Cleveland Clinic’s Innovation Center, promoting advancements like virtual reality in chronic pain management, reflecting a growing trend in digital health investments.
Cleveland, Ohio – The Cleveland Clinic’s Miller Family Pavilion announced a strategic partnership with venture capital firm Khosla Ventures on Tuesday, aimed at launching new healthcare technology companies. This collaboration will see both organizations making joint investments in healthcare startups, committing equal funding towards the development of innovative solutions in the industry.
Under the terms of this partnership, Khosla Ventures will spearhead the technical development and recruitment for the joint ventures, while the Cleveland Clinic will oversee clinical operations. Their joint efforts will focus on companies that leverage artificial intelligence, therapeutics, diagnostics, and models promoting home-based and value-based care.
This announcement builds upon an already established relationship between Cleveland Clinic and Khosla Ventures. The partnerships have included the use of Vista AI’s MRI technology, a Khosla portfolio company. Additionally, Khosla Ventures has previously collaborated with Cleveland Clinic-backed insurtech Oscar Health to create a co-branded health insurance plan.
Investment from Khosla Ventures is set to enhance Cleveland Clinic’s Innovation Center, which is responsible for overseeing the health provider’s various research initiatives. Khosla Ventures has shown active interest in digital health since 2020, having funded companies like R1 RCM, Abridge, and Rad AI. Furthermore, this new investment partnership is expected to involve matching funds directed towards emerging health tech startups in the sector.
A notable area of focus within this collaboration is virtual reality technology aimed at managing chronic pain. AppliedVR, a company based in Los Angeles, is currently working alongside Cleveland Clinic and Geisinger on clinical trials utilizing virtual reality for chronic pain treatment. This company has raised $29 million in Series A funding to further its virtual reality-based chronic pain management approach.
The importance of digital healthcare solutions has been amplified due to the COVID-19 pandemic, which has increased the demand for technologies that can be safely administered in patients’ homes. Recently, AppliedVR’s EaseVRx gained recognition as the first virtual reality medication to receive breakthrough device designation from the FDA for specific chronic pain conditions.
In March alone, other significant funding deals in health IT included Ro securing $500 million for digital health services and Insitro receiving $400 million for AI-driven drug discovery initiatives. This surge in funding reflects a broader trend of increased venture capital investments in digital health technologies.
As Khosla Ventures prepares to actively support and establish multiple healthcare tech companies alongside Cleveland Clinic in the coming years, Dr. Hal Paz from Khosla Ventures has indicated openness to seeking similar partnerships with additional healthcare providers, suggesting the potential for expanding collaborative networks in the healthcare technology domain.
The Cleveland Clinic’s ongoing commitment to innovation through this partnership with Khosla Ventures represents a significant evolution in healthcare investment strategies, fostering a new era in the development of advanced medical technologies.
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Additional Resources
- Modern Healthcare: Cleveland Clinic and Khosla Ventures Partnership
- Wikipedia: Artificial Intelligence in Healthcare
- Modern Healthcare: Health Tech Funding Updates
- Google Search: Healthcare Technology Investments
- Fierce Healthcare: Ambient AI Investment News
- Google Scholar: Chronic Pain Virtual Reality Research
- Fierce Healthcare: AppliedVR Funding Round
- Encyclopedia Britannica: Digital Health Overview
- MSNBC: Trailblazing Women in Healthcare
- Google News: Healthcare Innovation
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