Monday, April 14, 2008

VC firm Catalyst changes name to mirror health care focus

By Christopher Calnan

Newton venture capital firm Catalyst Health and Technology Partners has bowed to the realities of its investment portfolio and officially has changed its name to Catalyst Health Ventures.

The change mirrors the firm's shift to strictly health care investments, according to Catalyst general partner Joshua Phillips.

Catalyst has funded 12 companies since it was founded in 2000. In 2002, the firm started to focus its investments on health care devices when it became apparent that it was its strong area, Phillips said.

"We decided that because that's what we have the most expertise (in), the best network and the most interest. It's where we could add the most value (to portfolio companies)," he said.

In February, Catalyst closed on $3.5 million of a planned $25 million fund-raising, according to public documents. But Phillips declined to disclose the size of the firm's fund or the number of funds the firm has raised since he established Catalyst with co-founder David Hendren.

Last week, portfolio company BioTrove Inc., a Woburn-based maker of life sciences research products, filed for a $75 million initial public offering -- the only local venture-backed company to register for an initial public offering this year.

And last month, Catalyst partnered with Waltham-based Kodiak Venture Partners on a $4 million Series A funding of Allegro Diagnostics.

It was the first funding in which Kodiak teamed up with Catalyst. But Kodiak general partner Andrey Zarur, who is also Allegro's chairman, said Kodiak would look at other deals to syndicate with Catalyst.

Catalyst "is not afraid to roll up their sleeves and help these guys," he said. "There's a lot to be said for people who stay a given size and focus on the area of their expertise."