University of Michigan's Wolverine Venture Fund Participates in $7 Million Series B Investment in ArborMetrix
Student-led fund partners with two of the region's leading VC firms on deal with real-time healthcare analytics provider
ANN ARBOR, Mich., July 18, 2013 /PRNewswire-USNewswire/ --The Wolverine Venture Fund, managed by students at The Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies at the University of Michigan Ross School of Business, today announced it has invested in ArborMetrix, a leading provider of real-time healthcare analytics. The $7 million Series B round of venture capital financing was led by RPM Ventures alongside existing investor Arboretum Ventures.
The investment will accelerate ArborMetrix's national market expansion to meet surging demand for its proven real-time, risk-adjusted clinical performance analytics tools. ArborMetrix's analytics platform enables healthcare providers and payers to evaluate the effectiveness of evidence-based care. This leads to an improvement in the quality, safety and cost-effectiveness of surgical and other specialty care, which will be essential for survival as the healthcare system evolves.
"ArborMetrix is addressing a very complex challenge: the ability to translate data into the ability to discern what is working and what is not in treating patients," said Erik Gordon, associate director of the Zell Lurie Institute and managing director of the Wolverine Venture Fund. "This can save lives and cut healthcare costs, which made it a very attractive deal for our students. It also provided the unique opportunity for them to work hand-in-hand with two well-established venture capital firms, which is an experience that simply cannot be replicated in the classroom."
The $5.5 million Wolverine Venture Fund was the country's first student-led venture fund and serves as a shining example of the Institute's action-based approach to entrepreneurial education. The Fund's student members seek, screen and negotiate investments and develop significant experience in these areas - and in working with VCs and entrepreneurs. Since its inception, the Wolverine Venture Fund has invested more than three dozen companies in a wide range of innovative industries such as information technology, life sciences and alternative energy. A team of students drove the investment in ArborMetrix, including sourcing the deal and conducting all necessary due diligence, negotiation and collaboration with other investors.
"Working on this deal was a great opportunity to truly get a hands-on experience in the venture capital world," said Kevin Crosby, MBA '14 and Wolverine Fund member. "It was an exciting and invaluable process to partake in. ArborMetrix is a great addition to the Wolverine portfolio."
ArborMetrix CEO Brett Furst stated, "We're fortunate to partner with not only two outstanding professional firms, but also with the Wolverine Fund, to bring ArborMetrix additional support and resources far beyond their financial backing to help us reach the next level of success. We look forward to continuing to arm healthcare providers and payers with the most advanced analytics they need in today's dynamic healthcare environment to help deliver the highest quality care at the lowest possible cost. ArborMetrix has been experiencing exponential growth and closing this round of funding will allow us to continue to build momentum by expanding our footprint and enhancing our industry-leading solution."
About the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies
The Institute and its Center for Venture Capital and Private Equity Finance bring together a potent mix of knowledge, experience and opportunities from the front lines of entrepreneurship and alternative investments. The student learning experience is further enhanced through internships, entrepreneurial clubs and events that serve to provide viable networks and engage the business community. The School's three student-led investment funds, with over $6.5M under management, immerse students in the business assessment and investment process. Founding Board Members include Samuel Zell, Chairman of Equity Group Investments and Eugene Applebaum, Founder of Arbor Drugs, Inc. For more information, visit the Institute at www.zli.bus.umich.edu.
SOURCE Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies