Welcome back to The Sunstone Way.
It should come as no surprise that health care is big business. In 2021, health care was more than 18% of the country’s gross domestic product (GDP), according to the Centers for Medicare and Medicaid Services. In California alone, where personal health care spending was the highest in the nation in 2020, $410.9 billion was spent.
But I bet that you are like me when it comes to thinking about health care – you think about how it impacts yourself and your family. Here’s an example:
A few weeks ago, we published a Founder Focus about Joseph Rapaport, who suffered a severe back injury that ultimately led to the creation of Kenko Physical Therapy. Reading his story took me back to when I suffered a serious back injury while playing soccer in college.
Physical therapy was a big part of my recovery, but it wasn’t always easy to keep it up. I was a college kid, and I had a busy life!
So years later, when I read about the online services Kenko provides to keep physical therapy patients engaged, I was intrigued. We didn’t have the internet back in my college days, but this startup showed how innovation and modern technology are making it easier to provide personalized health care.
Leading Edge Technology
Advances in medicine and health care in general are coming at a breakneck pace. We are the beneficiaries of modern medical miracles that weren’t even thought of a decade ago.
And it has happened in the entrepreneurial ecosystem – founders come up with an idea, start a company to help develop that idea and bam, there’s an advance in surgical technique, a new way to deliver critical cancer drugs, a connection to therapists to help children. All of those ideas have come from founders associated with Sunstone.
We believe in that sort of innovation. The healthcare sector makes up almost 18% of the Sunstone Management portfolio.
And we were privileged to be part of the recent 25th Annual SoCalBio Conference in Long Beach. In addition to pitches from up-and-coming startups, there were sessions exploring the latest bioscience market trends and technical advancements.
An Excellent Example
I hope you’ve had a chance to read the profile of my friend Walter Larkins. Walter is the epitome of a successful serial entrepreneur, starting and selling multiple companies.
Most of those companies have been in the healthcare industry. Walter started by coming up with a new, less invasive way for surgeons to conduct heart surgery. The idea was so good, industry giant Johnson & Johnson eventually acquired Walter’s company.
He’s still in the healthcare sector today, with his Sapphire RCMS helping bridge the gap between healthcare providers and insurance companies. And he gives back on multiple levels in Long Beach, including being a founding board member of the Long Beach Accelerator.
I’m thrilled to say that Walter has agreed to help us with his advice to make the Launch Beach: 100 Startups campaign a success.
Health Care Key To Future
Long Beach Mayor Rex Richardson made health care a key pillar of his Grow Long Beach economic development strategy. That means that health care is a pillar of the Long Beach Venture Fund as well. We will be looking to help the Long Beach Accelerator attract startups in the health care fields, whether inventions of new technology or approaches to patient care. And we’ll be looking for ways to give those startups access to capital through the Long Beach Venture Fund.
A strong community has a strong health care system. A strong health care system has an active community of innovators advancing treatment options. An active community of innovators has a supporter, networker and benefactor enriching the community – and that’s The Sunstone Way. Come be a part of it.
CEO & Managing Partner
Sunstone Management, Inc.
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Notes: This blog post is for information purposes only and is not intended as an offer to sell securities or the solicitation of an offer to buy securities. Such offers are made solely pursuant to formal offering and subscription documentation in an investment fund (“Fund”).
We refer to early-stage technology entrepreneurs as Founders. Information provided here is to inform about the types of small business start-ups that have been selected for participation in certain programs in which Sunstone participates. Information provided here is aspirational and there is no assurance of success. Early-stage investing comes with an inherently high degree of risk, including the loss of some or all of an investment. The information provided is neither an offer to sell or an inducement to offer to buy interests in any Sunstone sponsored fund that may have invested in the Founder.
Interests in private funds such as the Long Beach Venture Fund are offered pursuant to an exemption from registration with the SEC and are therefore high-risk, illiquid investments. Those considering such investments should be able to afford losing some or all their money. For more information about the Long Beach Venture Fund, including a summary of risks, please request a Private Placement Memorandum from Sunstone Management, Inc.
More About Sunstone Management
Sunstone Management is a diversified private capital sponsor firm headquartered in Southern California that invests in diverse early-stage technology entrepreneurs who seek to build great companies. We believe in the aspirational power of the American economy to attract and inspire investors and entrepreneurs from throughout the world. We deliver new and exciting opportunities for economic growth through the creation of innovative public-private partnerships, and our unique experience across government, education, and private sectors. Identified by Financial Times as one of America’s Fastest Growing Companies three years in a row. In the second quarter of 2023, PitchBook ranked Sunstone the seventh most active early-stage venture capital firm in the country, and 18th overall.
© Sunstone Management Inc., 2023