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Lisa Suennen to leave Psilos Group

Lisa Suennen has left Psilos Group after 15 years with the firm to serve as a consultant to venture firms, startups and corporations as she evaluates new opportunities

Slideshow: Bring on the 2012 IPO Candidates

The market for venture-backed IPOs has been pretty dead so far this year. But based on new filing activity, it looks like there’s some optimism things will improve. At least six venture-backed companies have filed to go public since the start of the year, in sectors ranging from enterprise software to semiconductors to car rentals. […]

Psilos Group Looks to Raise $400M VC Fund

The Psilos Group, a healthcare focused VC, is looking to raise $400 million with its latest fund, three sources say.

Psilos held a first close in December of roughly $50 million, one of the sources say. The target for fund IV is $450 million, that person says.

Founded in 1998, Psilos currently has $585 million under management. The firm’s third fund, Psilos Group Partners III LP, raised $303 million in 2007.

Psilos, which has offices in New York, Corte Madera, Calif., and Santa Fe, N.M., invests in healthcare services, healthcare information technology and medical technology. The VC firm typically puts in from $8 million to $15 million per deal and expects to invest up to $20 million to $25 million over the life of an investment, according to the Psilos web site.

Al Waxman: IPOs Are Looking Dicey, But PE Can Pick up the Slack

Last month, one Psilos Group-backed portfolio company was all set to file an S-1 to go public. We did have one IPO in France in July before the world markets got strange. But then there was the debt ceiling crisis in Washington, more bad news on the economic front, and a steep sell-off in the […]

SeeChange Sees $20M Series B

SeeChange, the health management and healthcare company, has accepted $20 million from new investor Maverick Capital and existing investor Psilos Group. Eric Kim worked on the investment from Maverick and Al Waxman, from Psilos, worked on the transactions. Other specifics were not publicized.

Poll Results: Celebrity Hires Don’t Produce Real ROI for VC or PE Firms

You’re just as skeptical as we are about the merits of a VC or PE firm adding a celebrity to its roster.

In this week’s poll, 27% of peHUB readers said celebrity hires produce real ROI for VC and/or PE firms, but 73% said such hires are little more than publicity stunts.

“I think this collision of pop culture and VC produces great PR and thus probably some great deal flow, but actual returns? Hard to see the direct connection,” wrote Lisa Suennen, founding partner of venture firm Psilos Group Managers and a peHUB contributor. “I did write about this very topic recently on VentureValkyrie when MC Hammer joined up with venture incubator NewME.”

Three others who wrote extended comments said the real benefit of bringing on a big name is that it helps with

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VCs Predict Potential Health Care IT Bubble In 2011

Health care investing, and specifically opportunities that meld information technology with care delivery and automation, could be big in 2011. In fact, already the “b” word is being used (“b” for potential bubble). There are good reasons for this brightening prospect. VCs have had a chance to digest some of the uncertainties and changes expected […]

In Health Care Investing, Some VCs See Opportunities

A lot has been said about the health care reform shepherded by the Obama Administration and passed by the 111th Congress–both good and bad. In venture, there is an uncertainty over how the legislation will unfold and which startups will have the best chance of prospering. Some believe efforts and technologies to migrate retirees to […]

Fundraising Updates: vSpring, Weathergage, Golub Capital…

The following six fundraising updates have been culled from SEC filings:

vSpring Capital has raised $35 million for vSpring III from 3 investors. The venture firm invests up to $5 million in growth capital per deal.

Weathergage Venture Capital Management, a VC-funds of funds manager formed by former Knightsbridge Advisors pros, has entered the market with its second fund. The firm seek $200 million for Weathergage Venture Capital II LP, with $50 million a parallel offshore fund. The firm’s first fund had $250 million in commitments and closed in 2007. Cazenave & Co. is the firm’s placement agent.

EDG Partners, a growth and buyout oriented private equity investment firm based in Atlantia, Georgia, is raising $150 million for EDG Partners Fund II, L.P. The firm has gathered $10 million from five investors to date.

Psilos Group Raising New Fund

The target is $450 million, according to an SEC filing. Psilos did not return calls seeking comment, but Thomson Reuters says the firm manages around $550 million in capital. Its portfolio has been focused on healthcare services, healthcare IT and medical technology, and especially on companies that can both improve healthcare and lower costs.

In September I wrote about a holding company that Psilos put together that combined technology from several of its portfolio companies — including electronic health records, software that administers claims for employers who insure themselves, and transaction processing that manages plans — and created a subsidiary in San Francisco called SeeChange that sells insurance plans for people with chronic but manageable diseases. Take care of yourself, and you and your employer save money.

VCs Duel On Healthcare Reform

Here’s Harry Rein from Foundation Medical Partners telling Maria Bartiromo on CNBC today how innovation in the new healthcare reform bills has “hit the cutting room floor.”

“They’re focused on access and reductions in cost…(but) you don’t get to lower costs without innovation. It IS the solution,” Rein said.

Al Waxman of the Psilos Group has a very different view. Healthcare innovation does not always lower costs, he found — sometimes it makes costs go up. Waxman discovered this first-hand in the 1970s, when he invented an ultrasound device that he thought would lower healthcare costs by eliminating unnecessary surgeries. But it didn’t. It raised costs because doctors used the device to do unnecessary procedures to lower their chances of getting sued.

Gamma Medica-Ideas Raises $24 Million

Gamma Medica-Ideas Inc., a Northridge, Calif.-based developer of digital molecular imaging systems, has raised $24 million in its first round of institutional funding. Psilos Group led the $14 million equity tranche, and was joined by Capital Resource Partners (which also provided $5m in mezzanine debt). Bridge Banm provided a $5 million revolving line of credit. […]

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Here’s One Way To Improve Healthcare for Entrepreneurs

Psilos is launching a startup in California, SeeChange Health, to sell insurance plans for people with chronic but manageable diseases. If you take care of yourself according to medically accepted standards, you save money on premiums and the medical industry saves money on care.

SeeChange’s product is designed for individuals and small businesses, but the startup is a subsidiary of a holding company Psilos put together that combines an acquisition — HNA Triveris, a 19-year-old New Jersey company that administers claims for employers who insure themselves — with technology from other Psilos portfolio companies.

Triveris has a robust electronic health record, according to Lisa Suennen at Psilos, and another Psilos company, HealthEdge, has a transaction processing system for managing insurance plans. The idea is to to use the technology to customize different health plans for the same employer, since employees are likely to have different and sometimes multiple chronic diseases.

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