The new fund will provide capital for Iowa-based startups that seek to improve health care outcomes, promote health equity and generate positive social impact, especially for underserved populations and those with complex care needs.
“CareSource is committed to improving the health of Iowans for the long-term,” said Erhardt Preitauer, president and CEO of CareSource in a press release. “Establishing the CareSource Iowa Opportunity Investment Fund means we can fuel innovation across the state, as we do in our other markets, while amplifying solutions to address the toughest issues our communities face.”
CareSource will initially invest $2 million in the fund, with individual investments of up to $500,000. The fund will syndicate alongside ISA Ventures’ direct investment and other venture funds.
ISA Ventures will source and vet companies for consideration, complete due diligence and recommendation investments to a committee composed of representatives from CareSource. Investment decisions will be made by CareSource.
“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. “These investments will create new jobs and opportunities for Iowans, while also making an impact on our state’s vulnerable populations.”
The CareSource Iowa Opportunity Investment Fund is just one of the initiatives CareSource has launched to support the health of Iowans. The CareSource Foundation recently awarded $165,000 to multiple Iowa community-based organizations through a grant challenge.