Quest for efficiency

By sponsoring new VC firm HealthQuest Capital, Sofinnova Ventures has found a way to support companies off the beaten venture path that are too small for its typical funds.

According to Sofinnova, the firm saw an opportunity for a new fund for medical devices and molecular diagnostics - areas that aren't attracting as much venture capital as biotech. That led Sofinnova alum Garheng Kong to found HealthQuest last year. HealthQuest launched its $110 million debut fund last month to invest in commercial-stage companies with products that improve patient outcomes while lowering healthcare costs, either by improving therapies or reducing the use of unnecessary tests or treatments...