Official Launch of the Global Health Equity Fund (GHEF)
Summary
In 2022, the WHO Foundation in partnership with OurCrowd committed to launching the Global Health Equity Fund (GHEF) , an impact investing fund to mobilize resources and support access and equity-focused innovations at scale. Despite increased health spending globally, health inequities persist and continue to grow, undermining development and the ability of countries to rebound from shocks such as the COVID-19 pandemic. The GHEF will have a target size of $200 million and will invest in 25 to 30 innovative companies across regions and at various stages of maturity, ensuring a global reach and offering a unique opportunity for investors to support global health and positive social determinants of health. By investing in technologies related to medical care and mitigation of health risks, the partners aim to create a platform that will generate a multi-faceted impact, expediting global access to health by making health solutions accessible to millions and spurring economic growth through the direct creation of jobs within the portfolio companies and indirectly through improving population health.
Approach
To address global health equity investment gaps, the WHO Foundation and OurCrowd will launch the Global Health Equity Fund (GHEF) , an impact investing fund, to mobilize resources and support access and equity-focused innovations at scale.
By investing in technologies related to medical care and mitigation of health risks, the partners aim to create a platform that will generate a multi-faceted impact. First, it will expedite global access to health through making advanced solutions with limited availability accessible to millions. Second, it will spur economic growth through the direct creation of thousands of jobs within the portfolio companies as well as through positively affecting peoples’ health, thus creating favorable conditions for increased economic productivity.
The GHEF will have a target size of $200 million and will invest in 25 to 30 innovative companies across regions and at various stages of maturity, ensuring a global reach and offering a unique opportunity for investors to support global health and positive social determinants of health. The fund will encourage breakthrough technology companies to make their health solutions and IP accessible, particularly to low-income countries, by providing incentives and technical and legal support to companies who sign onto an Access Pledge.
This commitment will build on OurCrowd’s strong track record in venture capitalism, managing $1.9 billion in commitments and funding frameworks, with over 350 companies in its portfolio and 59 exits to date, and on the WHO Foundation’s track record of mobilizing funding and innovation to support the WHO. The GHEF will support WHO’s mission by investing in areas of core organizational priorities while also driving resources into areas that further impact progress on the 2030 agenda across Sustainable Development Goals 2 (Zero Hunger) , 6 (Clean Water & Sanitation) , 7 (Affordable & Clean Energy) , 9 (Industry Innovation and Infrastructure) and 13 (Climate Action) .
Action Plan
Key milestones:
August 2022: finalization of all marketing, communications, investor relations and legal material
September 2022: launch of the GHEF at CGI in the context of UNGA
October-November 2022: Roadshows targeting the EU & the US
February 2023: OurCrowd Summit
End of year 2023: initial closing upon securing ~$20million in capital commitments. Final closing expected 12 months following initial closing.
Background
The WHO report titled “Global Expenditure on Health” clearly shows that as health spending has increased, so too has the importance of public spending on health, albeit with huge and persistent disparities across country income groups, with significant challenges for low and middle income countries. The world’s natural and manmade resources are dwindling, widening the already significant gaps between people who have access to such fundamentals as basic health care, clean air, fresh water, and food. The rise of global health inequity continues to undermine economic development efforts, affecting the abilities of countries to both rebound from and respond to shocks like the COVID-19 pandemic.
Overall, global spending on health has doubled in real terms over the past two decades, reaching $8.5 trillion in 2019 and 9.8% of GDP (up from 8.5% in 2000) . Spending on health remained highly unequal—and more unequal than the distribution of global GDP. High income countries accounted for nearly 80% of global spending on health and their average spending per capita was more than four times the average GDP per capita of lower-income countries.
A key lesson from the COVID-19 pandemic is that the benefits of health investment go beyond the health sector to the general prosperity and security of the population more broadly. But despite the clear imperative to maintain funding for ongoing service delivery and cross-cutting public health functions, and the need to strengthen long-term investment in primary health care and pandemic preparedness, continued increases in public spending—or in spending priorities within health sector and beyond—are not a given.
There is a need and opportunity to fill the gap by mobilizing the private sector and individuals around transformation via innovation, focusing on breakthrough and accessible solutions that enable better health and foster long-term economic growth and well-being.
Progress Update
In Q1 2023 partners on this commitment moved forward with initial Europe and Japan investor outreach and roadshows generating up to 22+ high-priority and ongoing investor conversations: Investor outreach at the World Economic Forum in Davos was implemented in January. Outreach was continued at the OurCrowd Summit in Israel in February, and then the initial Japan pre-roadshow visit was made in March. In Q1, the design of the framework of the Access Pledge by the Fund was also commissioned.
Highlights of select priority leads include: successful and ongoing negotiations with HNIs including Marius Nacht Family Office and a major local Israeli investor in the Life Sciences; due diligence with one of the largest and multi-billion-dollar Japanese banks and placement agent with target investment of $60 -70m; ongoing due diligence with global US-based asset manager and potential placement agent; engagement with 5 global pharmaceutical conglomerates and 3 impact-aligned foundations and 1 sovereign investment company + 1 DFI.
In Q2, the Swiss roadshow was completed in April, cultivating potential investment leads. Partners are now actively planning roadshows targeting Europe, Asia, and Middle East, with planned events for Japan, UAE and Singapore between May and July. Additionally, a partnership with Siemens on access to resources for portfolio companies has been executed.
Partnership Opportunities
Investors and organizations investing in or backing the Global Health Equity Fund (GHEF) will have the opportunity to associate themselves with the WHO Foundation (external recognition, access to events, thought leaders, internal engagement opportunities etc) .
Portfolio companies will have access to back-office services (legal, accounting, IT, compliance) , public relations (media support) , business development (implementing & strategic partners) , technical health expertise/thought leaders, clinical and regulatory agencies worldwide etc.The 25 to 30 selected companies will be closely accompanied by OurCrowd to ensure operational and financial growth. Just like with any company from their funds, the OurCrowd advisors will be talking to the GHEF companies on a daily basis.,In order to successfully perform the first closing ($20 million) and then reaching the target size for the GHEF ($200 million) , OurCrowd and the WHO Foundation will primarily need financial investments. Additionally, other types of support will help the fund succeed: expertise, time/human effort, introductions/contact facilitation, usage of infrastructure/physical spaces, amplification/media buy, etc.