Prime enterprise capital traders for Well being Tech startups

You don’t want a medical diploma to see that well being tech is scorching proper now.

Amazon’s $3.9 billion acquisition of One Medical, a community of primary-care clinics, made it clear that expertise firms have large plans to remodel the healthcare business. Alphabet, the dad or mum firm of Google, has two separate subsidiaries (Verily and Calico) growing instruments and coverings to battle ailments and getting older.

And the Apple Watch in your wrist is full of health-focused options together with coronary heart and sleep monitoring, remedy administration, and, as of this month, a physique temperature sensor to assist girls monitor ovulation cycles.

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The subsequent era of breakthroughs are certain to be much more consequential, as startups harness cloud computing, A.I., and ever tinier chips to dream up new services and products. 

For the enterprise capital traders who specialise in well being tech, the period of startup innovation is spurring a frenzy of exercise. The variety of VC investments in well being tech has elevated considerably in each measurement of valuations and variety of offers previously 5 years, and a few giant VC corporations are rolling out particular funds devoted completely to well being tech. In 2018, enterprise capital funding in well being tech totaled $21.3 billion over 2,249 offers. In 2021, deal values totaled $50 billion throughout 3,315 well being tech offers.

Fortune surveyed the sector of well being tech enterprise traders to select a few of the prime dealmakers within the sector. The eleven traders beneath are among the many most energetic in Pitchbook’s database of the biggest well being tech funding offers over the previous 5 years. The traders symbolize a variety of organizations, from giant, common goal VC corporations like Andreessen Horowitz, to specialised, well being tech-focused boutiques like Arch Enterprise Companions and Oak HC/FT.

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Learn on to fulfill the VC traders with their fingers on the heartbeat of the well being tech business.


Hemant Taneja, Normal Catalyst

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Courtesy of Normal Catalyst

Age: 47

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Residence base: Bay Space, California

Large offers: Livingo (lead investor in a number of funding rounds), Commure, Camila, Samsara

To say that Taneja is the VC who wrote the e-book on well being tech isn’t any exaggeration — he’s co-authored three books about his imaginative and prescient for healthcare as accessible, proactive, and reasonably priced. Because the strategist behind a few of Normal Catalyst’s most profitable investments thus far, Taneja has put his healthcare philosophy to work. His early guess on Livongo, a digital well being startup, become the largest exit in well being tech in historical past after the corporate was acquired by Teledoc for $18.5 billion in 2020.

Taneja describes Livongo’s success as a “catalyzing event” within the business. “There’s many founders and entrepreneurs that got inspired to build companies that follow Livongo’s model.” He’s additionally an investor in Commure, Camila, and Samsara, and Snap. Taneja lately grew to become the CEO of Normal Catalyst, a task so latest it’s not listed on their web site but, however comes after he has more and more spearheaded the agency’s funding plans. “It’s a phenomenal time to get into building companies in the healthcare sector,” he says. “It’s an opportunity to shape what the next generation of healthcare systems is going to look like.”


Vijay Pande, Andreessen Horowitz

Courtesy of a16z

Age: 52

Residence base: Menlo Park, California

Large offers: Devoted Well being (led $300 million sequence B), Sutro, Casa

When Pande joined Andreessen Horowitz in 2014 with the bespoke title “Professor in Residence,” the then 5 yr outdated enterprise capital agency was cautious of healthcare investing. However after recognizing some startups he was enthusiastic about, Pande satisfied agency co-founders Marc Andreessen and Ben Horowitz to “go big into the space.” In 2015, a16z, because the agency is usually referred to, launched its first $200 million Bio fund with Pande on the helm. The exponential progress of every fund since then speaks for itself; a16z is now on its fourth — a $1.6 billion fund. Pande led the $300 million sequence B funding spherical into Devoted Well being, a digital well being startup centered on Medicare beneficiaries. The 2018 funding was one of many largest thus far within the sector, and Pande credit the energy of the startup’s founding staff and its distinctive enterprise mannequin. Amongst Pande’s different large hits are investments in Sutro and Casa.


Ameena El-Bibany, Artis Ventures

Courtesy of Artis Ventures

Age: 31

Residence base: San Francisco, California

Large offers: Precision Nanosystems, Loop Genomics, Apama Medical

El-Bibany describes her position in well being tech enterprise capital as “bridging the gap between academia and industry.” It’s a activity she’s ideally suited to. Having centered her analysis on stem cell engineering, microbiome analysis, and DNA harm and restore as a pupil, El-Bibany acquired sidetracked from her aim of pursuing a Phd when a possibility arose to affix Rising Tide VC in 2014. She constructed the agency’s whole well being tech and biotech apply. From there, she was hooked on investing.

Her first funding ever was in Precision Nanoystems, which was acquired by Danaher Life Sciences final yr. Different key investments she has made are in Loop Genomics which was acquired by Component Biosciences and Apama Medical, which was acquired by Boston Scientific. El-Bibany doesn’t view her wins as solely monetary successes, and cites advances in healthcare as a driving motivation. Her recommendation to startups? Begin with the issue, not the answer. “Oftentimes, we see interesting technology that is built and then teams search for a problem to solve it with,” she defined. “Other times, we see teams that have very well characterized the problem at hand, and then build a technological solution to fix it. I usually encourage teams to do the latter,” El-Bibany says. 


Annie Lamont, OAK HC/FT

Courtesy of Annie Lamont

Age: 65

Residence base: Connecticut

Large offers: VillageMD (led $36 million Collection A), Athenahealth, Devoted Well being

When Lamont acquired into enterprise capital within the Nineteen Eighties, the well being tech investing subject as we all know it didn’t exist. “There was no one else that was focusing on [healthcare],” she says. “So I made that sort of my expertise and practice.” As a pioneer within the sector, Lamont has set a excessive bar for many who have adopted, with greater than thirty investments in a few of the most extremely valued well being tech firms thus far. The VC agency that Lamont began in 2014, Oak HC/FT, was the lead investor in VillageMD, which now has a $14.3 billion valuation. Lamont was additionally an early investor in Athenahealth and the largest investor on the time of Athenahealth’s IPO; the corporate bought final yr for $17 billion. She was additionally an early investor in Devoted Well being, Aspire Well being, which was acquired by Anthem, and OncoHealth which was acquired by Arsenal Capital Companions.

Lamont says crucial think about a startup’s success is the individuals. “It’s really about the resourcefulness, relentlessness, and the talent of the CEO and then the team,” she says. And a long time after serving to spark investor curiosity within the sector, Lamont is extra optimistic than ever: “Now we have multi-generations of entrepreneurs who’ve grown up in healthcare and understand it better and are creating better models that will have more impact on the true costs and quality of healthcare.”


Helmy Eltoukhy, Inexperienced Sands Fairness

Courtesy of Helmy Eltoukhy

Age: 43

Residence base: San Francisco, California

Large offers: Synchron, Encoded

A two-time startup founder, scientist, and electrical engineer, Eltoukhy brings a wealthy breadth of expertise to his position as the top of life science investments at Inexperienced Sands Fairness. In his twenties, Eltoukhy constructed a startup that merged semiconductor expertise with DNA sequencing, promoting it a number of years later to Illumina. He ultimately parlayed his expertise to backing different entrepreneurs. “There was a dearth of investors in the healthcare side that had experience of founding companies from the idea stage and taking them all the way to an exit or IPO and into a standard of care,” he says.

He was an early investor in Synchron, an organization conducting the primary mind pc interface and Encoded, a therapeutics firm that makes use of genetic engineering. Eltoukhy says success in well being tech comes from not solely having an incredible concept, however from an concept that matches the second. “In healthcare, timing is everything because the timelines are so long,” he defined. “Some things that sound like great ideas may be too early to develop because of regulatory hurdles or technology that is too early to develop, so it’s important to understand where a field is about to take off and investing at the right time,” he says.


Robert Nelsen, ARCH Enterprise Companions

Wealthy Fury—Getty Pictures

Age: 59

Residence base: San Francisco, California

Large offers: Altos Labs, Resilience

With an astonishing monitor report of prescient investments, and a aptitude for making large, typically controversial, pronouncements, Nelsen is a novel determine inside the world of well being tech tech. Of the greater than 150 firms he has been concerned with, 48 have reached valuations above $1 billion. His philosophy, he told Geekwire in 2016, is “to bet on great science, take risks with risk takers, tackle big problems, and to ignore convention.”

As Managing Director and co-founder of ACH Enterprise Companions, Nelsen focuses on well being tech and pharmaceutical investments. He led the sequence B, C and D funding rounds in Resilience, a biomanufacturing startup that goals to hurry up deployment of vaccines and different medicines. He was additionally an early investor in Juno Therapeutics which was acquired by Celgene and Array BioPharma which was acquired by Pfizer. In March 2022, ARCH closed a $2.5 billion fund in biotechnology investments.


Beth Seidenberg, Westlake Village BioPartners

Courtesy of Beth Siedenberg

Age: 65

Residence base: Los Angeles, California

Large offers: Livingo, Flexus, Progeny

Seidenberg has seen healthcare from each angle— a doctor, then government, and now investor with over 40 investments in well being tech. Seidenberg appears to be like for firms that may “see around the corner”. She was an early investor in Livongo Well being, which was acquired by Teledoc in an $18.5 billion deal. She was additionally an early investor in ARMO Biosciences, Flexus Biosciences, and True North Therapeutics. She helped incubate Progyny, one of many first fertility expertise firms to ever go public. She believes a staff’s grit is simply as necessary as a standout concept: “The most important thing that makes or breaks these companies ends up being the people, you can have a great idea and the wrong team, and you won’t have a great outcome,” she says.  


Peter Singlehurst, Baille Giffords

Courtesy of Peter Singlehurst

Age: 36

Residence base: Edinburgh, United Kingdom

Large offers: Honor, Ro, Tempus

Singlehurst stands out on this record as a generalist investor, however he views that as a energy, not a weak spot in relation to healthcare investing. “There seems to be a general consensus that specialist investors do health care, and non-specialist investors can’t do everything else. We don’t believe that’s true,” he defined. As the top of personal investments at Baille Giffords, Singlehurst’s staff has led the agency’s investments in startups Ro, Tempus, and Honor—all a few of the greatest well being tech offers thus far. Singlehurst joined Baille Giffords’s graduate coaching program after ending a grasp’s diploma in 20th century philosophy in 2010. On the time, Baille Gifford’s was solely investing in public firms. Singlehurst helped spearhead the corporate’s efforts to start out investing in firms at their earliest levels, a division of Baille Giffords that has since invested about $10 billion throughout over 100 companies globally.


Krishna Yeshwant, Google Ventures

Courtesy of GV

Age: 44

Residence base: Boston, Massachussets

Large offers: Adimab, Oscar, One Medical, Beam Therapeutics

Earlier than he was a healthcare investor and a health care provider, Yeshwant was a pc scientist. His curiosity in well being tech was piqued after he helped a bunch of surgeons construct medical software program in 2002. Like many traders who helped construct the well being tech investing subject, Yeshwant noticed a possibility to merge tech entrepreneurship with medical therapies. He helped discovered GV’s incubation program, which has constructed firms corresponding to Verve Therapeutics and Flatiron Well being. “Science is breaking open to benefit patients and we’re still at the early innings of new advances in gene editing and base editing,” Yeshwant says. At GV, the place he co-leads its life sciences group, Yeshwant’s portfolio contains greater than fifty investments corresponding to Adimab, Beam Therapeutics, Oscar well being and One Medical.


Bijan Salehizadeh, Lux Ventures and NaviMed Capital

Courtesy of Bijan Salehizadeh

Age: 49

Residence base: Washington D.C.

Large offers: Auris, Velocity Medical Analysis

Salehizadeh was the primary seed investor in surgical robotics firm Auris, which was bought to Johnson and Johnson in 2019 for $5.7 billion. A longtime companion at Highland Capital, he struck off on his personal a number of years in the past to discovered NaviMed Capital, which focuses on progress buyouts within the well being tech area. Salehizadeh additionally works as an advisor to enterprise capital Lux Capital and co-invests with them — among the many startups he’s backed with Lux is the medical machine firm Mendaera, and the IVF expertise firm Alife well being. Educated as a health care provider earlier than he pursued a profession on the enterprise facet of healthcare, Salehizadeh has said that he is skeptical of tech entrepreneurs with no healthcare expertise who assume they’ll “disrupt” the extremely regulated business. With NaviMed, he helped construct Velocity Medical Analysis, a agency that consolidates medical trial websites, which was purchased by GHO Capital final yr.


Sofia Guerra, Bessemer Enterprise Companions

Courtesy of Sofia Guerra

Age: 31

Residence base: Boston, Massachusetts

Large offers: Oshi Well being, Home Rx, Turquoise Well being

Guerra instructed me that her investments are nonetheless of their early levels, however that doesn’t imply she doesn’t know how one can spot a winner. Her investments with Bessemer Enterprise Companions embody the agency’s main funding in Home Rx’s Collection A fundraising spherical. Earlier than becoming a member of Bessemer, Guerra was an investor at BoxGroup Ventures. She can be the co-founder of Nucleate Bio, an entrepreneurship program that helps postdoctorate college students and PhDs convey scientific initiatives to the business market. Guerra says {that a} founder’s drive and mission captures her consideration. “I’m particularly excited to meet founders who have been outsiders or underdogs and have worked incredibly hard to turn those odds around,” she explains. “We are just in inning three of health tech so there is so much that we need to do to reverse the trends in rising healthcare costs and poor outcomes,” she added.

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