Now Tullman and Shapiro are looking to do it all over again. The net internal rate of return of Fund 1 is 70% and there are 14 companies still remaining. They also made the choice to roll up all of their personal investments in Livongo into the fund, which Shapiro jokes “may have been the largest financial mistake ever made” for them personally, but it also cemented the future success of the firm and the fund as investors received around a 20x return. But in 2016, they decided to start their first health-focused fund, so they could raise money from institutional investors, like health insurers and hospitals. The firm started out by creating special purpose vehicles to invest capital from family funds and high-net worth individuals. “The longer we keep people alive, the more services they need.” “You can never solve the healthcare problem, because the more successful you are, the bigger the problem gets,” says Tullman. The firm, they say, is similarly “rewiring the status quo.” It originally started with a broader focus, including companies in energy and education, but ultimately they kept being drawn back to healthcare for the ability to impact people’s lives and the size of the market. The name comes from the 7 copper wires that made up the transatlantic cables that first connected the United States and United Kingdom. They founded 7Wire in 2013 after leaving AllScripts. Glen Tullman (L) and Lee Shapiro (R) running the Chicago Marathon.
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