- Feb 21, 2024
Globally, the digital health market was found to be amounting to a value of $180.2 billion in 2023 and is ready to reach $549.7 billion by 2028, with a CAGR growth of 25% in this period. This shows that there are attractive opportunities to be found in the digital health space.
While seeking investment for a digital health start-up, it is crucial to choose the right investor. A good investor brings expertise, a valuable network, and quality experience.
As it is hard to get a sense of an investor’s personality approach without direct experience, we have described the best digital health investors to guide the founders in making an informed decision.
List of the Top 10 Digital Health Investors.
1. A16z
A16z, a well-known investor in Silicon Valley, actively invests in early-stage digital healthcare ventures like Omada, Komodo, and Ribbon Health. It was founded in 2009 by Ben Horowitz and Marc Andreessen.
Investment Size: $1-10 million
Number of Investments/Year: 10-12
Investment Areas: AI, Bio + healthcare + crypto, consumer, games, fintech, and building toward American dynamism.
Past Investments: 8Tracks and 99Dresses
2. National Science Foundation
National Science Foundation gives billions of dollars to early-stage founders and small businesses by financing through a small business innovation research (SBIR) grant program. It usually helps the early-stage start-up navigate the technical transitions.
Investment size: $275k – $2 million
Number of Investments/Year: 200-500
Investment Areas: Companies are funded considering the possible impact, market pull, technological innovation, and ability to scale.
Past Investments: Astrabeam and Nucleos
3. 7wireVentures
7wireVentures is a particular healthcare venture fund that supports empowered consumer-focused products. They are on board with the latest healthcare trends and seek to invest in companies, resulting in their growth.
Investment size: $4-6 million
Number of Investments/Year: 2-4
Investment Areas: The organization invests in the area of informed, connected health consumers.
Past Investments: Caraway and Livongo
4. Rock Health:
Rock Health aids in forming connections between corporations and innovators in healthcare by providing expert advice, guiding clients with future industry trends, and funding them to start digital health adoption.
Investment size: $500k – $5 million
Number of Investments/Year: 4-5
Investment Areas: Specifically invest in software and data driven business models.
Past Investments: Collective Health, Omada Health
5. Virtue VC:
The base location for Virtue VC is Austin, Texas, and the venture looks forward to investing in early-stage healthcare start-ups.
Investment size: $500k – $1 million
Number of Investments/Year: 8-12
Investment Areas: This organization invests in ventures that fulfill the following factors: data, dollars and delivery of care.
Past Investments: Evvy and Nomi Health
6. Healthy Ventures:
Healthy Ventures works with the founders to build companies that scale healthcare; presently, they are focusing on seed-stage funding for digital health technologies.
Investment size: $1-3 million
Number of Investments/Year: 4-5
Investment Areas: They are up for investing in every sector of healthcare except for therapeutics.
Past Investments: Concert Health and Season Health
7. Looking Glass Capital:
Founded in 2019, Looking Glass Capital is a New York-based venture capital firm concentrating on supporting founders driven by a mission in development related companies in sectors of health climate, and empowerment.
Investment Size: $300-500k
Number of Investments/Year: 10-12
Investment Areas: Invests in areas such as digital therapeutics, healthcare IT, vertical speciality care, and more.
Past Investments: Sylvan Health and Hone Health
8. Lerer Hippeau
Lerer Hippeau is an NYC based venture capital investing in entrepreneurs with bold ideas since 2010, with a portfolio of over 350 companies including Guideline, MIRROR and Allbirds.
Investment Size: $500k – $2 million
Number of Investments/Year: 20-25
Investments Areas: The Company has no set parameters and is happy to be a diverse investor.
Past Investments: Vibe Bio and K Health
9. Flare Capital
Flare Capital is a venture capital firm investing in healthcare technology with a dedicated fund and strategic partnership. They provide organizations with resources, insights, and commitment to success.
Investment Size: $100k – $10 million
Number of Investments/Year: 5-10
Investment Areas: Invests on healthcare and organizations creating product and services for healthcare.
Past Investments: Iora Health and Bright Health
10. Susa Ventures:
Susa Ventures invest in early-stage start-ups with unique advantages such as network effects, creating sustainable effects, and providing proprietary data.
Investment Size: $1-3 million at the seed and pre-seed
Number of Investments/Year: 20-25
Investment areas: Invest on area of work such as delivery data integration, care condition, clinical infrastructures, bio tech companies and pure life science
Past Investments: The Wound Co. and Photon
Conclusion
There has been a tremendous rise in investments in digital healthcare lately. Companies are driven to enhance healthcare solutions. The shift towards digitization and automation in healthcare is showing great promise for improving health results. Companies on the lookout for investors should definitely keep all the aspects we have mentioned here in mind to surge forward to keep up with the prevailing digital health trends.
