From Operating Room to Boardroom: Joe Rinehart on Founding, Fundraising, and the Power of the Cove Fund Network

In the world of medical technology startups, few stories encapsulate the complexities of entrepreneurship and the value of strategic capital like that of Joe Rinehart, founder and CEO of Perceptive Medical. A practicing anesthesiologist turned repeat entrepreneur, Rinehart sits uniquely at the intersection of innovation and investment — not only leading a MedTech company but also serving as a Limited Partner (LP) in Cove Fund. In a recent conversation with fellow Cove Fund LP and operator Roger Van Duinen, Rinehart reflected on his dual role, the enduring lessons of entrepreneurship, and how the Cove Fund network has shaped his journey.

A Founder’s Evolution: From Clinical Curiosity to Commercialization

Rinehart’s path to startups was anything but linear. Initially drawn to anesthesiology for its technological rigor, he also had a long-standing passion for software development. The two worlds converged at UC Irvine, where he and a group of colleagues began exploring how automation could reduce clinical workload and improve consistency in care.

Their first company, launched in 2010, developed an automated IV fluid management system that was eventually acquired and commercialized by Edwards Lifesciences. The experience proved foundational — both in building confidence and in surfacing the hard truths of startup execution. “You see strategies that work well, and you see mistakes you’d try to avoid in the future. All of it informed how we built Perceptive,” Rinehart noted.

Perceptive Medical, his current venture, aims to simplify complex workflows in the operating room through smart automation — a mission that has proven as technically challenging as it is operationally demanding. “Every cost and timeline estimate, I should just double,” he laughed. “It’s MedTech. Everything is harder than it looks.”

What Sets Cove Fund Apart

When asked why he chose to engage with Cove Fund — first as an LP, then as an investee “I’ve been an LP since fund I.  Never expected to take investment from the Fund by Mike B talked me into it!” — Rinehart highlighted its distinctive structure. “The value is in the people,” he said. “You’ve got 99 LPs, most of them successful operators, and the ability to tap into that knowledge is incredible. Whether it’s modeling help from someone like Mike Benvenuti or regulatory advice from someone who’s done it before, that network is everything.”

Cove Fund’s model, which actively engages LPs in diligence and governance, also provided Rinehart with a unique lens on fundraising. “It’s like getting the cheat codes,” he joked. “You see what happens on the other side of the pitch. You start thinking not about why a startup could succeed, but why it might fail — and how founders are preparing for those risks.”

Lessons from Both Sides of the Table

That dual perspective has deeply shaped how Rinehart operates. “There’s a shift you have to make when moving from science to startup,” he said. “You’re not running a lab anymore. It’s a business. You need to make decisions that align with commercial goals, not academic curiosity.”

He also emphasized the hard truths of founder life: “Startups are frequent crisis and 100% financial stress. You’re always worried about runway. And even if you do everything right, it might not work. That’s why you need people around you who’ve done it before — who can help you avoid unforced errors.”

From his involvement in due diligence to building his own team, Rinehart sees clear throughlines. “At Perceptive, I’ve leaned into investing early in compliance and documentation. It’s cost us more upfront, but when the FDA shows up, we’ll be ready. Otherwise, we risk missing a hazard we failed to properly mitigate and now we have to go back to design because the FDA requires it.”

Why Southern California — and Why Now

As a life sciences entrepreneur, Rinehart believes Southern California is uniquely positioned. “Irvine is one of the big three MedTech hubs in the country,” he explained. “We have access to talent, industry partners, and academic institutions like UC Irvine. When you need an introduction to someone at Boston Scientific, someone in the fund probably has a connection.”

The regional concentration of expertise, combined with Cove Fund’s local-first investment strategy, has created a high-leverage ecosystem. “It’s not just capital. It’s customers, recruits, advisors — everything you need to accelerate,” Rinehart said.

Advice for Future LPs and Founders

For those considering joining Cove Fund as an LP, Rinehart’s message is simple: “Get involved. Whether you’re still building or looking to give back, there’s a place for you. This isn’t a fund where you write a check and disappear — it’s a community.”

And for fellow founders? “Use the network. Engage early. Build relationships before you need them. Whether you’re raising capital or hiring a VP of Quality, someone in the fund has been there before. Take advantage of that.”

Final Thoughts

Rinehart’s story is a powerful reminder of why Cove Fund exists: to support entrepreneurs through more than just capital, and to build a community where shared experience turns into strategic advantage. From the operating room to the boardroom, his journey embodies the grit, humility, and resilience that define Southern California’s startup landscape.

About Us

Cove Fund is a seed-stage venture capital fund based at UC Irvine’s Beall Applied Innovation, a hub for Southern California entrepreneurs and investors. We invest in early-stage technology and life science companies with differentiated products that address large markets and can achieve major milestones with seed funding.

Since our inception, we have invested over $20 million and are actively deploying capital from our $24 million third fund. If you are a Southern California startup seeking funding — or an investor interested in becoming a limited partner — visit us at www.covefund.com.