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US VC funds join with medical devices firm to form accelerator named Vesalius Ventures

US groups Vanguard Ventures Inc. and Fremont Ventures have teamed up with Guidant Corporation, one of the world's most prominent makers of cardiovascular devices, to form a new venture entity called Vesalius Ventures.

The new firm, which is a venture capital accelerator rather than a fund, will vet and fund early stage investment opportunities in various related areas including life sciences and technology. Guidant will fund Vesalius for three years but it has the option to opt out after a year.

William McConnell, chief information officer at Guidant Corporation, stressed Guidant's commitment to growing its core business. ‘We believe the convergence of medical and information technologies offers opportunities to more effectively diagnose and treat patients with chronic diseases,' he added.

All three members of the consortium backing Vesalius will have the right to investment in any business it approves, but none will be obliged to do so. The company will be based in Houston and Dr Bernard Harris, a former astronaut, has been named president and chief executive officer.

The healthcare sector is rapidly growing in interest as a destination for venture capital investment. Part of its allure lies in the fact that it was not implicated in the dotcom or telecoms debacle of the late nineties. But there is also growing conviction about the industry's commercial prospects, underpinned by strong demographically-driven demand.

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