VCs just bet $3.5 billion that tech will transform the future of healthcare. These are the top 9 firms making the most digital health investments.


Omada Health
VC firms are investing in startups like Omada Health, which is focused on digital therapeutics for chronic disease.

Courtesy Omada Health

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In healthcare lately, tech is king.

Startups taking a tech-based approach to healthcare have been a magnet for VC investment dollars, and the trend shows no sign of slowing down. Around the world, VCs poured $3.5 billion into about 371 different digital health deals and financings in the second quarter of this year, according to CB Insights.

Nine VC firms were especially active in the space, according to a recent CB Insights report focused on the second quarter of 2019. CB Insights ranked the VCs based on the number of unique digital health company investments they had made, but the the report doesn’t disclose those figures.

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These VCs have invested in such companies as Alma Health, which makes coworking spaces and tech for therapists, the digital therapeutics startup Omada, and health data platform LunaDNA.

At a time when iPhones are omnipresent and AI is taking over the world, healthcare is a relative latecomer to the potential of technology. The highly-regulated industry moves slowly, and isn’t exactly known for its tech-savviness, but a new wave of startups is betting it can change that.

Read more: One sector has emerged as the hottest area for AI investment. A top investor at Andreessen Horowitz told us why it’s the ‘natural next step’ for the industry.

In an indication of how competitive the field has become, there’s a two-way tie for the #1 slot on the CB Insights ranking. After that, there are a stunning seven VCs ranked as the #2 most active digital health firms.

Here’s who they are, and what they’ve been betting on:


a katz/Shutterstock

Menlo Park, California-based Khosla Ventures invests across a variety of industries, including healthcare, with the internet as one of its focuses. It’s ranked as the #2 most active digital health VC along with six others.

Investments: Microbiome diagnostics platform Whole Biome, memory-health-focused digital platform Neurotrack, tech-enabled physical therapy company Sword Health

The LunaDNA team. Illumina Ventures has invented in the startup.

Courtesy LunaDNA

F-Prime has invested in the animal DNA testing company Embark.

Joe Raedle/Getty Images

The Cambridge, Massachusetts-based F-Prime Capital invests in healthcare subsectors like biopharma and medical technology, as well as enterprise information technology and fintech, according to PitchBook.

Healthcare is “the largest sector of our economy and arguably the least efficient in many ways,” Carl Byers, a partner at F-Prime, told Business Insider.

“That leads to huge opportunities to improve care while reducing cost. And people who create the technology and services in the middle can earn and should earn in terms of making that happen,” he said. “So it’s just a great opportunity for that reason.”

Investments: Health data platform LunaDNA, animal DNA testing company Embark, mental healthcare platform Quartet

One of Echo Heath Ventures’ investments was in big data analytics platform GNS Healthcare.

Stockphoto

The Seattle, Washington-based Echo Health Ventures was founded in 2016 and is a collaboration between nonprofit healthcare company Cambia Health Solutions and healthcare VC Mosaic Health Solutions.

Rob Coppedge, CEO of Echo Health Ventures, who’s been looking at investments in healthcare services and health technology since the 1990s, says that the industries are at something of an inflection point today.

“And I feel like we’re finally at a point where we can make good on some promises we’ve been talking about as a system, as an industry, for 20-something years,” he told Business Insider.

Investments: Genome care delivery platform Genome Medical, on-demand urgent care company DispatchHealth, big data analytics platform GNS Healthcare


Svetlana Iakusheva/Shutterstock

The New York City-based Perceptive Advisors invests across healthcare sectors like biotech, pharma, diagnostics and health services.

Investments: Genomic care delivery platform Genome Medical, women’s fertility startup Kindbody, next-generation genomic sequencing company Archer

#2. Civilization Ventures

Civilization Ventures has invested in Omada Health, where Sean Duffy serves as CEO.

Courtesy of Sean Duffy.

San Francisco, California-based Civilization Ventures is focused on cutting-edge health tech and biology, and was founded in 2017.

Investments: AI-powered chronic disease platform Gali Health, digital therapeutics startup Omada, at-home health tech platform Pillo Health

Chiratae Ventures has invested in tech platforms for medical diagnosis and cancer consultations.

Business Insider Intelligence

Founded in 2006, Chiratae Ventures invests across areas like internet, health technology, e-commerce, media, biotech and more.

Investments: Online fitness platform CureFit, AI-based medical diagnosis platform SigTuple, online cancer consultation platform Onco.com

Jumpstart Foundry has invested in the startup Medifies, which aims to overhaul a patient’s hospital experience through real-time smartphone updates from health professionals.

Reuters

Jumpstart Foundry, in Nashville, Tennessee, was founded in 2010 and focuses on healthcare investments like digital health, tech-based health services and consumer health.

Jumpstart is tied as the #1 most active digital health investor with the VC First Round.

Investments: Digital health management platform Lytic, hospital health software startup Medifies, billing software company iTherapyDocs, doctor real-time documentation platform ScribeLink

First Round has invested in Alma Health, which makes coworking spaces and tech for therapists.

Charlotte Hu / Business Insider

Founded in 2004, First Round invests in a variety of sectors, including ones that are tech-based.

It’s tied at #1 for most active digital health investor with Jumpstart Foundry.

Investments: Alma Health, which makes coworking spaces and tech for therapists, AI-based hospital triage platform Vital, healthcare provider communication platform Karuna Health, dental care insurance platform Level

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