So you’ve got a brilliant idea, a scrappy founding team, maybe even a pilot in motion—and now you need capital. Not just any capital. Smart capital. The kind that understands HIPAA, clinical trials, and why your sales cycle is longer than a B2B SaaS tool.
Welcome to the world of digital health VCs.
This is not a generic list of anyone who’s written a check in healthcare. These are firms that specialize—or at least actively invest—in companies at the intersection of health, tech, data, and clinical care. Some are hyper-focused on digital therapeutics. Others lean biotech-adjacent. And a few are crossover beasts who understand the intricacies of selling to both hospitals and consumers.
Let’s dig in.
What Makes a Digital Health VC Different?
Unlike traditional tech investors, digital health VCs don’t flinch at a 12-month sales cycle. They expect regulation. They understand that “traction” might mean pilot results or IRB approval, not just MAUs.
More importantly, they bring more than money:
- Connections to hospitals, insurers, and pharma
- Expertise in reimbursement and FDA strategy
- LPs from health systems, payers, or pharma giants
- Credibility that helps with enterprise sales
And in some cases, they’ll pressure test your regulatory plan harder than the FDA.
Top Digital Health VC Firms (By Reputation + Deal Activity)
These are firms consistently involved in high-profile deals, often at the seed, Series A, and growth stages.
1. a16z Bio + Health
- Stage: Seed to Growth
- HQ: Menlo Park
- Notes: Andreessen Horowitz’s dedicated health fund. Invested in Devoted Health, Freenome, and Cedar.
- Strengths: Platform support, deep connections in biotech + tech convergence
2. Rock Health Capital
- Stage: Seed and Series A
- HQ: San Francisco
- Notes: One of the earliest digital health-dedicated funds. Known for original research.
- Strengths: Deep domain expertise, data-backed thought leadership
3. Define Ventures
- Stage: Seed and Series A
- HQ: Silicon Valley
- Notes: Backed Hims & Hers, MedArrive, and Cohere Health.
- Strengths: Focus on consumer health and enabling infrastructure
4. General Catalyst – Health Assurance Fund
- Stage: Early to Growth
- HQ: Boston
- Notes: Led investments in Olive, Livongo, Cityblock.
- Strengths: Partnered with major hospital systems (e.g., Intermountain)
5. Flare Capital Partners
- Stage: Seed and Series A
- HQ: Boston
- Notes: Focused exclusively on healthcare.
- Strengths: Deep LP network including major health systems
6. Bessemer Venture Partners
- Stage: All stages
- HQ: Global
- Notes: Backed companies like Bright Health, Hinge Health
- Strengths: Long-term investors, well-rounded portfolio
7. NEA (New Enterprise Associates)
- Stage: Seed to IPO
- HQ: Menlo Park + Global
- Notes: Invests in everything from medtech to SaaS to health.
- Strengths: Deep pockets, broad global footprint
8. First Round Capital
- Stage: Seed only
- HQ: San Francisco
- Notes: While not health-only, they’ve backed companies like Color Genomics.
- Strengths: Great for first-time founders, strong early-stage support
9. Town Hall Ventures
- Stage: Early-stage
- HQ: New York
- Notes: Focused on underserved communities and value-based care.
- Strengths: Mission-driven, excellent policy + Medicaid insight
10. HealthX Ventures
- Stage: Seed and Series A
- HQ: Madison, WI
- Notes: Invests in digital health infrastructure and clinical tools.
- Strengths: Small but specialized. High-touch partners.
Emerging + International Investors to Watch
Not every great investor is in SF or Boston. Here are some you might miss if you’re not paying attention:
- M Ventures (Merck’s fund) – EU-based, pharma-adjacent but digital health friendly
- DayOne Capital (Switzerland) – Partners closely with DayOne Accelerator
- Digital Health Ventures (Berlin) – Backs early-stage EU startups
- Horizons Ventures (Hong Kong) – Backers of Zoom and Babylon Health
- OurCrowd (Israel) – Active in health tech, diagnostics, and AI
Tips for Pitching Digital Health VCs
- Know your regulatory pathway cold – Don’t say “we’re just a wellness app” if you’re touching PHI
- Understand your reimbursement model – Who pays? How? When?
- Tailor traction to healthcare realities – Pilots, IRB approval, CPT codes matter
- Back up your claims with clinical evidence or a plan to get it
- Speak their language – Talk about outcomes, not just features
And most importantly:
Make it clear why your team is the one to solve this problem—because domain expertise matters more here than in most other sectors.
Final Thoughts: More Than Capital
The right investor in digital health isn’t just writing a check. They’re opening doors. To hospital networks. To regulators. To potential acquirers.
If you’re serious about building something that actually works in this system—something that gets adopted, reimbursed, and scaled—then partner with people who know how the game is played.
Once you’ve picked your targets, read:
- How to Nail Your Digital Health Pitch Deck
- What Digital Health VCs Look For in Startups
- Due Diligence in Digital Health
He has invested in startups including American Well, Neuronation, Mimi, and most notably mySugr – which was recently acquired by Roche. Min-Sung is also a contributing writer for mediums including TechCrunch and Tech.EU and studied Business Economics at Witten/Herdecke, Harvard, St.Gallen, and in Seoul.