Royal Philips Electronics has joined a new venture capital fund to support medtech and healthcare innovation.

The Gilde Healthcare III fund helps early- and growth-stage medical technology companies in Europe and the USA to develop and commercialise patient-centred medical technologies and solutions.

Philips is investing in Gilde Healthcare III in order to foster innovation in areas of strategic interest to its Healthcare business. Philips' anchor investment in Gilde Healthcare III is in line with its policy of 'open innovation' and deploying venture capital via independent funds.

Gilde Healthcare III will be independent of, and complementary to, Philips' existing innovation efforts such as the Philips Healthcare Incubator.

"Over the past years the venturing community has been instrumental in bringing breakthrough healthcare innovations to the market," said Steve Rusckowski, CEO of Philips Healthcare.

"Through our participation in the Gilde Healthcare III venture capital fund, we are taking another step forward in driving innovation in areas of strategic interest to Philips in healthcare. At the same time we will become even more connected to the venturing community, which is an important element of Philips' open innovation approach."

Philips holds a minority share in the fund, which has a target size of EUR 200 million.