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Allumia Venture partners, from left: Jeff Stolte, managing partner; Dan Galles; and Branden Fini. (Allumia Photos)
Providence Ventures announced that it is spinning out of the Providence healthcare system to become an independent venture capital firm with the new name Allumia Ventures.
Allumia is also raising a third investment fund, starting with a $150 million, 10-year commitment from Providence, which is the organization’s anchor investor.
After operating within Providence for a decade, the firm is “excited to extend our impact,” said Allumia managing partner Jeff Stolte, by working with a limited number of “mission-driven healthcare organizations” that want to invest with the group.
Stolte said adding new participants will bring additional perspectives to the due-diligence process of evaluating potential investments.
“By inviting other like-minded, similar organizations to the table, that collection of expertise only grows,” he said. “We’re getting a real depth of perspective.”
Providence Ventures, now Allumia, previously invested out of two separate $150 million funds financed by Providence.
Providence is a multi-state healthcare network based in Renton, Wash., and serves patients in Washington, Oregon, California, Alaska, Montana, New Mexico and Texas. The Catholic organization was founded by nuns in the 1800s and has become one of the largest nonprofit healthcare providers in the country.
Allumia has backed 28 commercial-stage startups, and Providence was either a customer of the companies or became one after the investment was made. Ten of the 28 companies have seen successful exits.
Stolte said that one of Allumia’s big strengths is access to on-the-ground feedback and insights from healthcare providers at Providence — and soon other investors — that the firm can share with the startups it’s funding. Allumia will also continue to partner with Providence organizations such as Providence Digital Innovation Group, a startup incubator.
Allumia will deploy its capital with startups tackling digital health, tech-enabled healthcare services, and med tech.
“Like everybody, we are very optimistic about the role of AI in healthcare,” Stolte said, but added that artificial intelligence is not ready to replace providers in actually delivering care.
Instead, AI can address administrative issues and improve efficiencies in healthcare, he said. It can also help with delivering virtual care and finding ways of boosting job satisfaction for nurses and other providers.
Stolte said Allumia is eager to find tech-supported solutions for improving access to mental and behavioral health.
“AI will play a role in the augmentation side — how do we help our clinicians practice at the top of their license and avoid burnout,” he said. But we’re “not replacing them with technology.”
