Top 10 HealthTech VC Funds for Early Stage Startups
Fundraising is one of the most important aspects of the world of HealthTech. Developing a truly disruptive healthcare innovation without some serious financial backing is hard – and that’s when healthcare innovation venture funds can help. Turning to healthcare-focused VC firms can actually be a better option than dealing with generalist VCs, as venture capitalists working in health usually have a better understanding of how long the pathway to a successful exit in such a heavily regulated industry may take. Here’s our overview of some of the most interesting healthcare VC funds to try your luck with this year.
1. Texo Ventures
Texo Ventures
Location: Austin, Texas
Stage: Series A+
Checks: $3M-$10M
Things to know: With a total number of 30 investments in their funding history, Texo Ventures has seen two notable exits – the acquisition of BetterDoctor and Precedent Health. The fund is currently on the lookout for more promising startups with medical devices and diagnostic software solutions that are uniquely differentiated and synergistic with ongoing reform initiatives. It’s also important to note that the investors of Texo Ventures expect founders to come up with a clear and cost-effective near-term regulatory pathway, and they don’t consider sectors with higher regulatory risk such as therapeutics, biotechnology, and pharmaceuticals.
Pro tip: Focus on innovation and impact. Texo Ventures is looking for startups that offer innovative solutions with the potential for significant impact in the healthcare industry. Show how your product is unique, how it addresses existing healthcare challenges, and how it aligns with Texo Ventures' mission of investing in transformative healthcare technologies. By highlighting these aspects, you can increase your chances of catching their attention and securing investment.
2. Rock Health
Rock Health
Location: San Francisco, California
Stage: Seed
Checks: Undisclosed
Things to know: Rock Health is probably one of the most internationally well-known HealthTech VCs in the market. In fact, Rock Health is not just a capital firm – it’s a complex organization consisting of an investment fund, its own advisory, and a non-profit focused on driving impact, innovation, and community. The firm has invested in 105 startups resulting in 22 successful exits including Sano, Mango Health, Doctor on Demand, and many more. Aside from funding opportunities, Rock Health offers valuable HealthTech industry insights and organizes its own summits that bring together healthcare capital and decision-makers.
Pro tip: Demonstrate potential for growth and scalability. When pitching to Rock Health, showcase your potential for rapid growth, scalability, and disruption in the healthcare industry. Highlight your team's experience and expertise, and the market opportunity for your product. By demonstrating your potential for growth and scalability, you can increase your chances of securing investment from Rock Health.
3. HealthTech Capital
HealthTech Capital
Location: Los Altos, California
Stage: Seed, Series A
Checks: $3M-$10M
Things to know: The firm claims to receive 500 proposals per year, with 10-16 of them eventually making it into the list of HealthTech Capital investments. The fund emphasizes its commitment to diversity, which results in 28% of women and 23% of non-white CEOs in an investment portfolio. A notable benefit of pitching to HealthTech Capital is their exceptionally straightforward screening process, which is thoroughly described on their website along with their regular screening events. The portfolio of the firm is very diverse and includes solutions for patients, providers, pharma, and payers. 6 successful exits including acquisitions by Apple (Tueo Health), Google (Liftware), and J&J (C-SATS) speak for themselves.
Pro tip: Highlight your team's experience and expertise. HealthTech Capital believes that a strong team is crucial to the success of a healthcare startup. When pitching to the fund, showcase your team's experience, relevant qualifications, and past successes in bringing healthcare products to market. Also, demonstrate how your team's unique skill set can help drive the success of your product. Remember, the fund values the human element behind each startup, so be sure to present your team's story in a confident, engaging, and professional manner.
4. OrbiMed
OrbiMed
Location: New York, New York
Stage: Series A+
Checks: $5M-$10M
Things to know: Being in the market for over 20 years, the fund has participated in 582 deals (typically engaging in rounds with 5-6 investments), resulting in 217 exits by 2022. Although OrbiMed prefers life science-related innovations, its actual portfolio extends to healthcare IT solutions aimed at enhancing practice economics, improving access to providers, and more. Its most notable exits – Tricida, Sienta and Invitae – operate in the biotechnology sector, but its list of successful investments include app development companies such as TigerConnect, the creators of an instant messaging app for clinicians.
Pro-tip: Tackle unmet medical needs. A clear regulatory pathway and go-to-market strategy are also essential for securing funding. OrbiMed values diversity in their portfolio and invests in a wide range of therapeutic areas, including oncology, neurology, and rare diseases. Keep these key factors in mind and you'll have a better chance of catching the eye of this highly successful firm.
5. Sante Ventures
Sante Ventures
Location: Austin, Texas
Stage: Seed, Series A
Checks: Undisclosed
Things to know: The fund has invested in 76 companies resulting in 13 exits including Health IT companies such as Explorys and Rise Health. Its interests also extend to MedTech and BioTech solutions focused on innovative technologies and healthcare delivery methods. Last year Sante Ventures launched its fourth fund, and it’s still actively accepting proposals from promising early-stage startups. In its assessment practices, Sante Capital actively utilizes machine learning in combination with proven investment expertise that allows them to produce risk-adjusted returns in a systematic public equity strategy.
Pro-tip: Focus on demonstrating a clear market need and addressing a significant gap in the healthcare industry. The fund seeks out companies with differentiated technology or solutions that can address critical unmet needs in healthcare. When pitching, be sure to highlight how your innovation can help improve patient outcomes and reduce costs for healthcare providers.
6. SpringRock Ventures
SpringRock Ventures
Location: Seattle, Washington
Stage: Seed, Series A
Checks: $2M-$5M
Things to know: SpringRock Ventures offers funding to companies with a focus on innovations in digital health, devices, services, oral health, SAAS, consumerization/eCommerce of healthcare, IT, wellness, and more. The fund accentuates the importance of certain demonstrated customer acceptance that they specifically assess in the screening process. With over 40 investments in their portfolio, SpringRock Ventures has had 15 acquisitions by major players (such as Microsoft, J&J, and Merck) and 4 IPO listings (Illumina, HemoSense, Vascular Solutions).
Pro-tip: Emphasize the potential scalability and market size. The fund invests in companies with the potential to significantly impact the healthcare industry on a large scale. Additionally, SpringRock Ventures seeks out startups with a strong team and a clear path to profitability. So, be prepared to showcase your team's expertise, track record, and financial projections during your pitch.
7. SV Health Investors
SV Health Investors
Location: Boston, Massachusetts
Stage: Seed, Series A
Checks: Undisclosed
Things to know: Since 1993, the firm has invested in 297 companies across MedTech, biotechnology, healthcare growth, and their specific field of interest – innovative solutions for dementia treatment, backed with a special Dementia Discovery Fund. Amongst its 82 exits, it’s worth noting the grand player of the telehealth market – Amwell, along with other successful examples of impressive growth such as AvidXchange and Bicycle Therapeutics. SV Health Investors claim to invest across different stages and geographic sectors as long as the innovation meets their expectations.
Pro tip: Focus on demonstrating how your startup can improve patient outcomes. This means having a clear understanding of the unmet clinical need that your solution addresses, and having robust data to support its efficacy. Additionally, SV Health Investors places a strong emphasis on partnering with management teams that have a proven track record of success in the healthcare industry. Make sure to highlight any relevant experience that your team has in developing and commercializing healthcare solutions.
8. Providence Ventures
Providence Ventures
Location: Seattle, Washington + Menlo Park, California
Stage: Seed, Series A
Checks: Undisclosed
Things to know: The fund is known for its high-potential portfolio featuring big names like Bolder Surgical, Iris, Avia, Lyra, SpineZone, and more. Aside from the actual investment, Providence Ventures offers HealthTech entrepreneurs access to their network of health system decision-makers as well as customer insights and healthcare expertise. The fund is open to proposals of both early-stage and late-stage investments in digital health, medical devices, and diagnostics. In 2022, Providence Ventures was nominated amongst the top 50 healthcare venture firms in Health Tech 50.
Pro-tip: Show a deep understanding of the healthcare industry and its challenges. The fund focuses on investing in early to mid-stage companies that are tackling some of the biggest problems in healthcare, such as care coordination, patient engagement, and reducing costs. To stand out, it's important to demonstrate a deep understanding of these challenges and articulate how your solution can make a meaningful impact. Additionally, Providence Ventures values partnerships and collaborations, so showcasing any existing partnerships or potential collaboration opportunities can also help to capture their attention.
9. 7wire Ventures
7wire Ventures
Location: Chicago, Illinois
Stage: Seed, Series A
Checks: Undisclosed
Things to know: The firm supports early-stage digital health companies that focus on developing the concept of Informed Connected Health Consumer. 7wire Ventures have invested in a number of disruptive healthcare products, some of which have completed successful exits (higi, Lightbeam Health Solutions). Its rapidly growing portfolio company Livongo went public in 2019 following its enormous success with the startup’s chronic disease management solutions. 7wire Ventures value innovations aimed at patient engagement, effective collaboration, and continuous digital access to healthcare.
Pro-tip: Highlight how their expertise, network, and resources can help your company grow and succeed. 7wire Ventures emphasizes a hands-on approach and active involvement in the companies they invest in. Be prepared to discuss specific areas where you think their involvement could add value and how you envision working together. Additionally, 7wire Ventures is focused on digital health solutions that improve access, reduce costs, and drive better outcomes, so be sure to emphasize how your solution aligns with these goals.
10. PTV Healthcare Capital
PTV Healthcare Capital
Location: Austin, Texas
Stage: Series A+
Checks: Undisclosed
Things to know: Despite a fairly average number of total investments – only 34 companies so far, the firm clearly has an eye for potential disruptors: 13 startups from PTV Healthcare Capital portfolio have made successful exits – such as BioMimetic Therapeutics, Apollo Endosurgery, and Cardiva Medical. It’s worth noting that the fund focuses on clinical and health infrastructure solutions with a clear preference towards life sciences. Consumer applications seem to be out of their field of interest, but medical devices and companies focused on research and development software definitely have a chance to catch their attention.
Pro-tip: Focus on the patient. PTV Healthcare Capital invests in companies that prioritize patient outcomes and experience. When pitching to PTV, be sure to clearly articulate how your product or service improves patient outcomes and experience. Provide concrete data and examples to demonstrate how your solution addresses unmet patient needs and delivers value to healthcare providers and payers.
In conclusion, securing funding for your health tech startup can be a difficult and complex process, but with the right methodology and guidance, you can increase your chances of success. Kepler Team can help you assess your current position, identify gaps, and create a plan to achieve your objectives.
Our team will work with you to strengthen your understanding of the fundamentals, validate your concepts, and introduce you to our investor partners. If you're looking to boost your chances of getting funding for your health tech startup, don't hesitate to contact us and explore how we can help you achieve your goals.