Behind The Fundraise With iGan Partners
On April 18, Toronto-based VC fund, iGan Partners, announced it had raised CAD $100M for its first fund, iGan Fund I; surpassing its initial goal of CAD $50M. The fund is focused on the health technology sector which includes digital health, medical devices, healthcare IT and AI. The fund will also provide diversified exposure to early-stage health technologies.
iGan was established in 2013 and is one of the largest healthcare VCs in the country.
To chat more about the latest fund closing, the CVCA spoke with Sam Ifergan, Founder and Managing Partner at iGan.
What is the investment focus of the fund?
The investment focus of the fund is on early-stage health technology companies, including: Digital Health, Medical Devices, Healthcare IT and Artificial Intelligence (AI). We are excited to have invested in incredible technological advancement, from advanced imaging & diagnostics to data driven clinical decision support and AI, all of which are increasing access to high quality and affordable care. Our fund is playing an important role bringing promising new technologies to market.
When did fundraising begin?
Fundraising began in June 2015 after we completed an initial close with some close family offices and with their blessing, we worked on increasing the size of the Fund.
Where are the majority of investors located?
We have a diversified investor base from all over the world: Canada, US, Mexico, UK, Israel, South Africa, UAE and Middle East.
Does the successful completion of the fund complement iGan’s thesis?
Yes, it does. We have two fundamental views on investing:
- That healthcare needs access to better information to help clinicians improve outcomes while keeping costs down. This needs to happen or it will simply become unaffordable. We seek to identify and help build companies that will deliver more information to the clinicians in an easy manner so they can more knowledgeably intervene on patients.
- We believe that Toronto’s ecosystem is highly innovative in medtech but needs help in commercializing its early stage companies. It needs both capital and skills and we bring that to the table.
Is iGan interested in exploring any other strategies?
We invest in healthcare which enables us to have deep expertise and knowledge in the industry. We have a hands-on approach and are committed to creating value to exceptional founders/scientists who have unique insights focused on driving technological advancements in healthcare.
We are entrepreneurs and are always open to new strategies if they make sense.
Is there anything particularly interesting about this fund close that you’d like to emphasize?
We continue to see investors who want to learn and understand more about the continued growth and innovation in the healthcare industry.
We are excited to continue investing in technologies that align with macro changes taking place in healthcare. In recent years, there has been an increasing focus on the use of AI in the healthcare sector due to the ability of AI improving patient outcomes. We have a large portfolio of companies using AI and have built up a strong foundation in a sector that Toronto is a world leader in.
On a scale of 1 to 10 (1=not at all challenging; 10=very challenging) how challenging did you find the fundraising to be?
Fundraising has no off-season. It’s challenging raising your first fund, but we are incredibly grateful to our LPs, who trust us and believe in our vision. We have a proven track record and continue to source high-quality opportunities that are aligned with our goals.
What single factor do you attribute to the success of the close of this fund?
At iGan Partners, we believe excellent outcomes are attained by setting ambitious goals. We invest our capital alongside our partners to ensure alignment of interest at all times. We follow a disciplined due diligence process, with a focus on creating value as well as leveraging our unique capabilities to help companies succeed.