Eli Lilly is working with a new venture capital firm to help underrepresented communities receive better health care.
The project: Lilly has invested $30 million in a partnership with Unseen Capital Health Fund LP, a newly formed venture fund built by racially diverse business leaders that is intended to identify and support early-stage minority-owned health care companies. The group hopes to fund up to 50 companies and raise a total of $100 million—and with Lilly’s support, it’s well on the way.
The fund will focus especially on health equity, digital innovation and the social determinants of health. Underrepresented founders often have firsthand knowledge of the limitations of the traditional health care system, as Unseen Capital’s general partner Kayode Owens told Bloomberg (subscription).
Why it matters: Black Americans and other people of color have long suffered significant disadvantages in health care—and have done so again during COVID-19. People of color are also underrepresented in pharmaceutical and other health-related industries, as well as among venture capital firms that could improve the situation. Unseen aims to change the fates of “unseen” communities, by combining the expertise of racially diverse investors with the insight of underrepresented founders.
Other efforts: In addition to the partnership with Unseen Capital, Lilly has also taken a range of measures to help promote racial justice, including by expanding diversity in clinical trials; working with other major companies through the OneTen coalition to hire, train and advance Black Americans into 1 million jobs; and doubling Lilly’s spending with diverse suppliers.
Lilly says: “Driven by unprecedented innovation, health care is attracting record levels of investment. To unleash the full potential of innovation in our sector, historically underrepresented founders need to receive more growth capital,” said Philip Johnson, Lilly’s senior vice president and treasurer. “With this capital, these founders can catalyze systemic change while improving health outcomes for society. Providing our financial and knowledge resources to Unseen Capital is an opportunity for Lilly to be an agent for change in a way that is authentic to our purpose and culture.”
Unseen says: “Solving for equitable health care is the challenge of the 21st century,” Owens told Bloomberg. “While Covid-19 laid bare the inequities of our health-care system, George Floyd’s killing laid bare the inequities of our justice system. We need to bet on underrepresented founders to be the agent of that change.”
The NAM’s commitment: In June, the NAM Executive Committee unanimously approved a Pledge for Action intended to close the opportunity gap by taking 50,000 tangible actions to increase equity and parity for underrepresented communities. The initiative is supported by The Manufacturing Institute. Make your commitment here.