Jumpstart Foundry is revamping its operations, and will no longer work as a business accelerator, MedCityNews is reporting. Rather, it now calls itself a seed stage healthcare innovation fund that will invest in 20 startups (for a start).
“The accelerator game has gotten boring,” Jumpstart CEO and founder Vic Gatto said in a statement. “There are a lot of accelerators that mean well but are bringing mediocre innovation to market because they’re playing an outdated game. We want to be a better version of venture capital, and this new innovation fund will supply the tools to really help startups succeed.”
Jumpstart is looking to back companies building diagnostic, digital health and tech service products. However, instead of offering money to fledgling companies, the new model will require startups to pay a $50,000 program fee to fund services related to market traction, capital raises and recruitment. And, as part of the deal, entrepreneurs will be introduced to venture capital funds and angel investors.
Jumpstart claims that its previous process has had a 71% success rate, and its alumni have gone on to raise more than $38 million. Its portfolio includes the likes of the health IT company NextGxDx, cloud-based system InvisionHealth, telemedicine-focused Octovis and device company evermind.