Community Health Centers Launch Majority‑Owned Venture Fund to Shape Healthcare Innovation

Community health centers (CHCs) are essential yet often overlooked providers in the U.S. healthcare system. Despite their critical role, these centers are frequently asked to adopt new health technologies after development rather than being involved in shaping them.

A new development aims to shift this dynamic: the recent launch of Facktor Ventures, an early‑stage venture fund that focuses on technology and services specifically for CHCs and the broader safety‑net healthcare sector.

Unlike traditional venture capital firms that rely on wealthy limited partners, Facktor Ventures is structured so that the health centers delivering care become the majority owners of the fund as limited partners. This arrangement gives them direct influence over investment decisions and a share of potential returns that can be reinvested in their missions.

“We built Facktor Ventures so health centers and other safety‑net organizations can collectively hold majority ownership as limited partners,” said Michael Ceballos, partner at Facktor Ventures and senior director at Facktor. “That connects capital with the experience of the organizations closest to patients, allowing them to inform innovation and share in its financial success.”

Facktor Ventures is the venture arm of Los Angeles‑based Facktor, a consulting firm that works with more than 360 health centers to advance community‑based care. The fund will invest primarily in Seed and Series A stage companies that develop healthcare software, digital health solutions, and other services aimed at supporting safety‑net care. Investment focus areas include patient access, revenue cycle performance, care management, workforce capacity, and cybersecurity. Mr. Ceballos declined to disclose the fund’s size.

Community health centers are nonprofit entities that provide affordable, high‑quality primary care to underserved populations. They serve 33 million Americans, with 90 % of patients living at or below 200 % of the federal poverty level—many of whom are uninsured or covered by Medicare/Medicaid.

These safety‑net organizations face unique challenges that conventional investment approaches often overlook, leading to products that are poorly aligned with their needs. By involving CHCs in shaping innovation, the fund aims to ensure solutions are better tailored and more scalable, potentially delivering significant impact.

Mr. Ceballos explained why he believes this model can expand the reach of community health centers. “The combination of scale and ownership is powerful,” he noted. “Community health centers collectively form the nation’s largest primary care network, serving millions of low‑income patients. When they help shape innovation and have a stake in its success, the potential extends far beyond any single investment. We want the people closest to patients to help build the future of healthcare, and to use the value created to sustain their mission.”

The venture’s goal is to move beyond a passive adoption model. Instead of waiting for startups to deliver finished products, CHCs will be able to influence development from the outset, addressing priorities such as staff burden reduction, improved patient access, and budget constraints. “We want safety‑net patients and the organizations caring for them to influence innovation from the beginning,” Ceballos added. “Our ambition is for the community health movement to become both an owner and an architect of its future, with a voice in the innovations it helps make successful and the opportunity to share in the value created.”

By placing safety‑net organizations closer to the source of capital, Facktor Ventures hopes to produce technology that better serves both patients and providers, ultimately advancing the mission of community health centers across the country.

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