Funding News NYC

Zoi Capital Raises $200 Million Healthcare Venture Fund

NEW YORK — Zoi Capital, a venture capital firm specializing in artificial intelligence (AI) solutions for healthcare, has raised $200 million for their Health AI Fund I. Founded by Mayo Clinic-trained cardiologist Dr. Ronald M. Razmi and Brian K. Beeler, former Executive VP and General Counsel of Horizon Therapeutics, the co-founders and Managing Directors share more than 50 years of experience in the medical technology field and have been responsible for more than $30 billion in exits via public markets and acquisitions.

Zoi Capital was founded after a former G7 Nation Head of State reached out to Dr. Razmi for help in evaluating how AI can increase access to high-quality healthcare. The conversation illuminated the need for experts with deep health AI expertise to drive the selection of the best use cases for funding. In the United States, the stakes are especially high because if the U.S. healthcare sector were a country, its $4.5 trillion size would rank as the fourth largest in the world, surpassing Japan’s entire economy.

“Much of the investment in the emerging health AI sector has gone into use cases that have a hard time gaining traction,” said Dr. Razmi. “This is due to a myriad of issues such as unproven economic benefits to the buyers, use cases not being ready for prime time, and inadequately trained AI models. You now need a new breed of investors who have clinical and operating experience with these technologies in healthcare to direct capital to the best companies” Razmi notes.

Against a backdrop of the recent decline in fundraising by venture funds and startups, Zoi Capital’s founders believe that a new approach to private market investing is needed. Brian Beeler noted “We believe high returns on capital will be earned by specialist investors with a deep focus on one sector. To that end, Zoi has assembled a team of digital health operators and investors to pursue this opportunity.” Zoi leverages its deep relationships with the leading medical institutions to secure deal flow and uses a set of proprietary score-cards for selecting the best companies. The Zoi team utilizes its extensive past operating experience in supporting their portfolio companies to formulate the optimal commercialization strategy and scale up.