RH Capital, a pioneer in women’s health investing, is taking a significant step forward in its evolution. The team behind the fund – Elizabeth Bailey, Stasia Obremskey, and Alice Zheng – has announced the launch of Foreground Capital, a new venture firm dedicated to advancing women’s health innovation.
This move builds on five years of experience and success at RH Capital, which emerged from an initiative started by Dr. Ruth Shaber in 2017. Recognizing that grant funding alone couldn’t drive sufficient innovation in women’s health, Shaber established Rhia Ventures to explore new financing models. RH Capital grew from this effort, culminating in a $38.5 million venture fund in 2022.
Elizabeth Bailey reflects on the early days: “When we started, there were so many questions. Was there enough deal flow in women’s health? Would co-investors want to work with a women’s health focused fund? Were entrepreneurs excited about partnering with us? We had to answer all of these questions affirmatively before we could even think about raising a traditional venture fund.”
The transition to Foreground Capital reflects the team’s response to evolving market dynamics and investor preferences. Stasia Obremskey explains: “The women’s health investment landscape has matured significantly since we got our start. With multiple funds now operating in this space and increasing capital inflow, we’re positioned to scale our impact and engage with a broader range of investors.”
The team plans to raise a larger fund under the Foreground Capital banner, signaling their ambition to increase their influence in the sector. A key goal is to position themselves to lead more investment rounds, addressing a critical gap they’ve observed in the market. “Finding a lead investor has been a significant challenge for many women’s health startups,” Obremskey notes. “With our expanded capacity, we aim to fill this crucial role more frequently.”
While maintaining their core focus on reproductive and maternal health, the team aims to broaden their investment scope. “We’re expanding our focus to include conditions that disproportionately impact women,” Alice Zheng notes. “The conversation in the women’s health innovation community has evolved from a somewhat narrow focus on reproductive health in the early days to a more comprehensive view of women’s health across all life stages.”
Several areas with significant unmet needs have been identified, including endometriosis, auto-immune disease, PCOS, pelvic health, and menopause. The team also emphasizes the importance of evidence-based solutions in their investment decisions. As Stasia Obremskey puts it: “We prioritize scientific rigor. A strong foundation of clinical evidence is essential for any investment we consider.”
One of the team’s key strengths lies in their rigorous due diligence process. Their deep expertise in women’s health allows them to thoroughly evaluate potential investments, which is especially relevant, as the launch of Foreground Capital comes at a time of growing interest from generalist funds in the women’s health sector. “We’re seeing more and more interest from generalist funds,” Bailey notes. “Many express a desire to increase their involvement in women’s health and are actively learning about the space. We often share our diligence with these funds to accelerate their understanding of women’s health. I think this is a really positive development that bodes well for the sector’s growth.”
Importantly, the team will also continue to manage RH Capital Funds I/II and support their existing portfolio companies. They also plan to make a few additional investments from RH Capital before raising a larger fund under the Foreground Capital banner.
As Bailey, Obremskey, and Zheng prepare to raise this new fund, the trio remains committed to their mission of driving innovation and equity in women’s health. Their transition marks not just a new chapter for them, but also a milestone in the evolution of women’s health investing. For the wider women’s health ecosystem, the emergence of Foreground Capital signals progress – a testament to the sector’s growth and also a promising sign of the advancements yet to come.
