Johnson & Johnson commits $15m to Vivo's healthcare fund

Set up in 1996, Vivo primarily seeks out investments in late development-stage pharmaceutical and medical device companies in the US, and growth-stage healthcare companies in China. Fund VIII closed at $750 million last month after nine months in the market, and is twice the size of its $375 million predecessor.

Vivo has been investing in China since around 2005 when it closed its fifth fund. It opened its first office in Shanghai in 2006, and then established a presence in Chengdu to manage renminbi-denominated investments. In 2013 it hired Shan Fu, a former senior managing director with The Blackstone Group, to open its Beijing office.

China is expected to account for about 50% of Fund VIII investments. In order to better deploy the larger pool of capital, the firm has increased its headcount to 18 investment professionals from just 10 when it closed Fung VII.

"We are excited about our investment in Vivo VIII as part of our strategy to support and advance innovation in the Asia Pacific region," said Vladimir Makatsaria, group chairman for medical devices in Asia Pacific at Johnson & Johnson, in a statement. "Vivo Capital's differentiated strategy and depth of experience in China and the US provides us a greater window on the emerging science in China, and opportunities to invest in these promising companies."

JJDC predicts that healthcare expenditure in China will grow to $1 trillion by 2020, with an average growth rate of 18% every year since 2012.

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• Topics
• Fundraising
• Greater China
• North America
• Consumer
• Fundraising
• China
• healthcare
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• Vivo Ventures