MUSC Launches Two New Venture Funds

The Medical University of South Carolina (MUSC), through the MUSC Foundation and MUSC Health supporting organizations, has announced the launch of two funds—1824 Health Ventures Fund I, LP and the South Carolina Health Innovation Fund (SCHIF), LLC —to support entrepreneurs, accelerate innovation, and stimulate economic development across South Carolina. Both funds will be managed by Bob Crutchfield, a senior executive with more than 30 years of leadership experience with major international companies, entrepreneurial startups and venture capital firms.

1824 Health Ventures Fund I, LP

The  1824 Health Ventures Fund, named in honor of MUSC’s founding year, will serve as a dedicated source of seed capital for MUSC-originated startups and emerging companies transforming health care. Backed by limited partners who support the broader MUSC enterprise, the $20 million fund will focus on early-stage investments that help to bridge the gap between academic research and commercial viability – a phase often referred to as the “Valley of Death,” when many promising discoveries fail to reach fruition due to lack of funding.

South Carolina Health Innovation Fund

The South Carolina Health Innovation Fund (SCHIF) is a $10 million complementary fund made possible through a strategic partnership between MUSC Health and InvestSC, the state’s Small Business Credit Initiative (SSBCI) administrator. SCHIF is focused on high-impact health innovation companies – both from within and outside MUSC – that are committed to growing and operating in South Carolina.

“By building an evergreen investment model, we’re laying the foundation for a durable and consequential innovation ecosystem across South Carolina,” said Will Cruz, chief Investment officer of InvestSC. “Our participation in the South Carolina Health Innovation Fund reflects our commitment to investing in the assets that generate meaningful leverage statewide.”

SCHIF will prioritize companies that align with MUSC’s mission to improve health and deliver value through innovation, while also creating jobs, and strengthening the state’s life sciences and health care innovation landscape. The fund is designed to draw upon federal SSBCI funding to fuel long-term, sustainable economic growth.

State impact

Aligning with MUSC’s OneMUSC strategic goal, the funds will be used to stimulate the state’s economy through innovation and are expected to support the creation and expansion of businesses and higher-wage STEM jobs in the state.

South Carolina currently ranks 45th in the nation in venture capital activity, according to U.S. News & World Report. Yet, the state experienced the 10th highest growth rate in venture capital relative to GDP from 2012 to 2022, underscoring its untapped potential.

“MUSC has been one of the state’s leaders in innovation and life-science development throughout its history,” said David J. Cole, M.D., FACS, President of MUSC. “These funds represent a transformational step in turning South Carolina into a national destination for health innovation and entrepreneurship. I’m excited to see how these funds support our own entrepreneurs and attract more to our state.”