Chrysalis’ Jones Sees Opportunities In Healthcare, Communication Technology

from Business First of Louisville – by Terry Boyd Staff Writer

Louisville, KY (August 21, 2009)David Jones Jr., who founded Chrysalis Ventures LLC in 1993, said the majority of companies in which Chrysalis has invested are in larger cities, such as Dallas and Atlanta.

“Metro clusters are where most of the new companies in the country are born,” said Jones, who is chairman and managing director of Chrysalis Ventures.

Even though Kentucky is a smaller state with one large urban area, Jones said, Chrysalis has invested about $60 million in 19 Kentucky-based companies.

Those companies went on to receive another $320 million in private-equity financing, then $200 million in public-equity financing. Those 19 companies have created a total of about 3,200 jobs.

“We’re interested in companies that apply technology to solving big business or consumer problems,” Jones said.

Though Chrysalis is best known for technology-related coups such as its investment in Genscape Inc., which tracks real-time power plant output and transmission, “health care and information services have gotten most of our investment,” he said.

Jones does not see Chysalis investing in biotech and drug discovery. “That’s not part of the health care industry that excites me. The next wave is to help people be healthy.”

He cited the success of a former Chyrsalis company, HealthMedia, which provides health-monitoring and advice using the Internet and SMS technology, replacing the need for some doctor visits.

The companies in Chrysalis’ latest generation of investments “are about applying communication technology developed on the coasts to solving new business problems.”

For example, Jones sees the Apple iPhone and its interactive, intelligent devices such as a GPS and accelerometer as the perfect applications for doctors to follow patents and measure their activity, such as caloric burn.

Information-delivery platforms are moving into people’s pockets, he said. Jones envisions information-service companies helping doctors move past face-to-face interaction to actually tracking how patients comply with treatment regimens.

“Entreprenuers who connect dots from what new technology can do to the needs it meets will succeed,” Jones said.