Two health-focused enterprise funds made their debut this week, supported with thousands and thousands of {dollars} to put money into healthcare startups. Earlier this week, pre-scale digital well being investor LionBird introduced an $85 million fund.
Only a day earlier than, healthcare firm AmerisourceBergen unveiled a brand new $150 enterprise fund centered on rising healthcare startups dubbed AB Well being Ventures.
Israel-based LionBird plans to make use of its new fund, LionBird III, to put money into 15 to twenty early-stage digital well being corporations. The corporate has beforehand invested in additional than 30 digital well being corporations together with TytoCare and Ovia Well being.
In the meantime AB Well being Ventures shall be utilizing its $150 million to put money into early- to mid-stage well being startups. The enterprise fund plans to assist its portfolio corporations with prototyping, testing, piloting and commercializing their merchandise.
WHY IT MATTERS
During the last decade, digital well being funding has continued to skyrocket. In 2021 Rock Well being reported that the entire funding for digital well being startups within the U.S. was $29.1 billion. That quantity is up from $14.9 billion in 2020.
The common deal dimension can be rising over time. Rock Well being reviews that in 2021 the typical deal dimension was $39.9 million, up from $30.8 million the earlier yr.
Whereas digital well being funding has slowed a bit of bit in Q1, there stays a lot curiosity within the digital well being house.
“We consider expertise will play a key position in shaping the way forward for healthcare – remodeling how care is delivered, recognized and handled – and we’re regularly inspired on this perception as we see the waves of recent and promising interdisciplinary expertise coming into the area,” LionBird’s normal companions mentioned in a joint assertion.
THE LARGER TREND
AB Well being Ventures and LionBird aren’t the one enterprise funds taking a look at early- and mid-stage corporations. In accordance with a CB Insights report, 45% of company enterprise capitalist digital well being offers are funding early-stage corporations, and 41% of offers are funding mid-stage corporations.
