Oncology Ventures Closes First Fund

Oncology Ventures has announced the oversubscribed closing of its first fund, Oncology Ventures Fund I LP, with $30 million of capital. The new fund has investors like Cardinal Health, City of Hope, and Moffitt Cancer Center. It also has a mix of institutional fund-of-funds, family offices, and individual investors.

Oncology Ventures’ investment strategy is to address the high costs and complexities of cancer treatment by backing early-stage cancer-focused data, infrastructure, IT, and services start-ups that leverage artificial intelligence and data to improve patient outcomes. The firm doesn’t invest in drugs, therapeutics, or medical device opportunities.

Oncology Ventures believes that its investment strategy is supported by sector estimates indicating that cost savings from early cancer detection and diagnosis could reach $26 billion per year. Only half of cancer patients get treatments based on the best scientific evidence. About one-third of cancer patients are hospitalized while getting cancer treatment. This is often because of infections, problems, or side effects that could be avoided by early intervention, better outpatient care, or more careful monitoring.

With 1.9 million new cancer diagnoses each year in the United States and 42% of cancer patients losing their life savings within two years of diagnosis, the demand for cost-effective and efficient cancer care solutions has never been more urgent.

New York City-headquartered Oncology Ventures was founded in 2022 and is led by healthcare investor and cancer survivor Ben Freeberg.

“Cancer care today is prohibitively expensive and overly complex,” said Mr. Freeberg. “We will invest in cutting-edge data and AI solutions to tackle the most pressing challenges in oncology, from early detection to treatment optimization. Our strategic focus is on supporting startups that span the entire cancer care continuum, from early detection and diagnosis to treatment and survivorship.”

According to recent reports, the global cancer diagnostics market is projected to reach $250 billion by 2028, growing at a compound annual growth rate (CAGR) of 7.2%. Similarly, the healthcare AI market, which includes AI applications in oncology, is expected to expand at a CAGR of 44.9% over the next five years, reflecting the demand for technologies that can improve diagnostic accuracy and treatment efficacy.

Oncology Ventures has already made seven investments, including Gabbi and mPATH for early cancer detection (June 2022); Reimagine Care, a provider of virtual-first cancer care that integrates clinical oncology experts and technologies for home-based cancer treatment and recovery (January 2024); OncoveryCare, a virtual survivorship clinic for cancer survivors (May 2024); IgniteData, a provider of systems for hospitals and research sites to transfer patient data for clinical trials (June 2024); Concr, a provider of data-focused services for the discovery and novel usage of cancer biomarkers (May 2023); and Health Universe, an open-source platform designed for AI and machine learning developers in healthcare, offering statistical models to improve outcomes and reduce costs (May 2023).

In addition to capital, Oncology Ventures provides strategic and operational support through its network of strategic partners. Members of the firm’s advisory board include Dr. Lee Newcomer, former Chief Medical Officer of UnitedHealth Group; Emily Melton, co-founder of Threshold Ventures; Carolyn Starrett, CEO of Flatiron Health; and Dr. Jeff Patton, CEO of OneOncology.