Providence will be an anchor investor in the newly independent venture capital firm, Allumia Ventures.
US healthcare provider Providence has spun off its investment arm, Providence Ventures, to create an independent VC firm called Allumia Ventures.
Providence will be a main limited partner in the VC firm and has committed $150m to Allumia’s third fund over 10 years. The VC firm will invite a small group of healthcare organisations to join the fund as limited partners, according to a release.
Providence’s move follows a handful of other corporates that have spun off their venturing units for different reasons. German utility E.ON spun off its venturing arm, Future Energy Ventures, in 2022 to be able to scale and accelerate its investments. Boeing spun off its venturing arm, AEI HorizonX, in 2020 after the aircraft maker hit financial trouble.
Providence originally set up its corporate venturing arm in 2015 to invest in healthcare and medtech startups.
“Allumia branching out will allow the fund to extend its reach, drive impactful investments that align with our mission and support leading-edge health solutions,” said Providence chief financial officer Greg Hoffman, in a release.
The VC firm’s strategy and team will remain the same, said Branden Fei, partner at Allumia, in a LinkedIn post. “We now just sit on an enhanced platform that will enable us to extend our reach and be even better for both our LPs and portfolio companies,” said Fei.
Allumia Ventures manages a portfolio of 28 investments and has had 10 exits. Its investments include Arrive Health, a clinical decision support tool, and Bolder Surgical, a medical device maker, which was acquired in 2021.
