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In the post - COVID world , VCs say it ’s not as sluttish to get excited about investing in digital health . heap activity in healthcare IT was comparatively flat in Q1 2024 at 74 total deals , valued at about $ 1 billion total , up only 3 % from the class - ago quarter , fit in to PitchBook data .
Still , promising inauguration have grabbed investor ’ attention this year . TechCrunch spoke with about a twelve healthcare VCs about the society they call back have the most promising time to come . While late take shape AI - driven inauguration that are solving astounding administrative challenges in the U.S. health care system dominated their recommendations , they also mentioned several slightly older , non - AI - focused business .
We narrowed their suggestions to the list of names that more than one VC note , which came in at an even 10 companies . VCs discourse with us the caller that were both in their portfolios and not .
Abridge
What it does : UsesAI to automate medical recordsbased on conversations between doctors and patient .
Founded in 2018 by Shiv Rao , a practicing cardiologist , Abridge is an early fledgling into the aesculapian note - taking quad and one that has secure integration with the all - powerful Epic Systems wellness phonograph record software .
Why it ’s promise : The Pittsburgh - based startup give excitement among investors and hospital organization eager to free up physician ’ time spend on preeminence - pickings . Abridge is the health tech startup that among investor we talked to was mentioned the most .
Some investor said that Abridge is leading its family . Other company contend to prevail the AI - powered aesculapian note - pickings marketplace include Ambience , Nabla , Microsoft - own Nuance and Suki .
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financial support : In February , Abridge raised a $ 150 million Series C led by Lightspeed Ventures at a valuation of $ 850 million , a mere four month after the practical aesculapian penman startup grabbed a $ 30 million Series B from Spark Capital , Bessemer Venture Partners , CVS Health Ventures and others .
CodaMetrix
What it does : launch in 2019,CodaMetrixuses AI to automate medical coding . The company ’s technology translate medical banknote stored in electronic health records into symptomatic codes , helping to reduce errors and administrative burdens .
Why it ’s assure : Medical coding is tedious and misplay - prostrate . Entering an wrong code for a status or treatment can lead to insurance rejection of claim and other administrative problem . Moreover , the burden of recruit code falls on already busy physician and nursemaid , lead to increased focus and burnout .
The companionship has competitors , include Fathom Health , but investors say that CodaMetrix has one of the largest annotated coding datasets .
Funding and valuation : In March , CodaMetrix grab a $ 40 million Series B from Transformation Capital with participation of returning investors SignalFire and Cressey Ventures . The deal valued the Boston - found company at $ 220 million , according to PitchBook .
Cohere Health
What it does : Cohere Healthexpedites health insurance favourable reception process , known as prior authorization , for aesculapian conditions with the help of AI .
Why it ’s promise : Prior authorisation management could take aesculapian and administrative staff 60 minutes as it take collect appropriate documentation for entry to health insurers or Medicaid . Cohere Health ’s AI can reduce the time it takes to do this to minute , saving medical and administrative staff hours on these tasks .
Investors say that Cohere is for now the drawing card in the space , but other inauguration that hasten health insurance approval for medical status includeAnteriorand Alaffia Health .
financing : Cohere Health raise a $ 50 million Series B earlier this year from Deerfield Management with engagement from Define Ventures , Polaris Partners , Longitude Capital and Flare Capital Partners .
Grow Therapy
What it does : produce Therapyconnects therapist who want to start out self-governing recitation with patients and insurance company . set up in 2020 , the startup employs the so - called business enterprise - in - box framework because it gives genial wellness professionals instrument for filing claims , meet payments and being matched with patient .
Why it ’s predict : The company claims that its business model offers healer more flexibility than if they were to provide their services through marketplaces like Headway or Lyra . While it ’s not clear whether that ’s indeed the compositor’s case , Grow , true to its name , is growing fast , investors say .
Funding and valaution : In April , Grow come together an $ 88 million Series C led by Sequoia at a $ 1.4 billion evaluation , according to PitchBook datum .
Equip
What it does : Four - year - oldEquipprovides online treatment for Kyd , teenager and adults in all 50 states and take most wellness insurances . Equip providers are also trained to address co - occurring conditions like anxiety , depressive disorder and obsessive - compulsive disorder ( OCD ) .
Why it ’s assure : About 10 % of the U.S. population develop an eating disorder during their lives , but only a fraction of these masses find help , according to the National Eating Disorders Association . The company ’s offering brings care to those who do n’t know near an use up disorderliness facility or favour to be cover online .
Funding and valuation : Equip has secured a sum of $ 110 million in funding from investor , admit Optum Ventures and General Catalyst . The company was last valued at $ 505 million , according to PitchBook data point .
Maven
What it does : The New York - free-base health clinic and benefits platform offers service for fertility , adoption , parenting , pediatrics and change of life through employers , include Microsoft and AT&T.Mavenalso serves Medicaid patients .
Why it ’s promising : investor say that 10 - yr - honest-to-goodness Maven continue to grow , given that its region of focus — digital health services for woman and families — has been historically underserved . WhileVC interest in women ’s wellness has grownin recent long time , the U.S. Supreme Court ’s determination to overturn Roe v. Wade in 2022 has shine an even bright spotlight on the need for engineering that serve the female population .
Funding and valuation : Since its founding , Maven has raised almost $ 300 million in funding and was last valued in late 2022 at $ 1.35 billion in a Series E round led by General Catalyst with the participation of VCs , including Lux Capital , Oak HC / FT and Sequoia .
Memora Health
What it does : Memora Healthoffers virtual AI - based care coordination , reducing administrative burdens for medical staff . The society ’s technology uses text messages to communicate with patients , automatize tasks like appointment reminders , answering patients ’ vernacular motion and garner data about symptoms and post - procedure recovery .
Why it ’s assure : Like many other AI - based health care startup , Memora saves medical faculty sentence . The society also aid affected role finger more supported on their health journeying .
support : The company spun out of Harvard Innovation Lab and went through Y Combinator in 2018 . Since then , it has raised nearly $ 80 million , accord to PitchBook data . Memora ’s investors let in General Catalyst and Andreessen Horowitz .
SmarterDx
What it does : Founded in 2020,SmarterDxuses AI to assist hospital not omit out on revenue by analyzing patients ’ lab outcome , medications and doctors ’ note to find minor misplay and omissions in patients ’ diagnoses and colligate medical codification . The ship’s company ’s technology reviews patient charts for truth before a claim is sent to health insurance or Medicare .
Why it ’s promising : investor say that since SmarterDx helps wellness scheme realise more receipts , the value of the company ’s technology is loose to measure .
Funding : In May , SmarterDxraised a $ 50 million Series Bround lead by Transformation Capital , with participation from Bessemer Venture Partners , Flare Capital Partners and Floodgate Fund . The latest capital infusion brought the company ’s entire funding to $ 71 million .
Summer Health
What it does : The two - year - oldSummer Healthconnects parents to pediatricians who , within minutes , respond to urgent charge and behavioural concerns . The fellowship provides its textbook messaging service directly to consumer and through employers who offer access to Summer Health as a welfare .
Why it ’s predict : meddling and worried parent want answers to their children ’s health issues properly away and around the clock . Summer Health reduces parent ’ concerns because they can get libertine responses to their question via an app .
backing : In April , Summer Health raised its $ 12 million Series A led by 7wireVentures and existing investors including Sequoia , Lux Capital and Chelsea Clinton ’s Metrodora Ventures .
Transcarent
What it does : Four - year - oldTranscarenthelps big companies save money on providing health policy to employee . The inauguration gives employees access to disregard medication , telehealth services and personalized AI - generated answers about their health coverage .
Why it ’s promise : Part of the company ’s fast rise could be ascribe to its laminitis , Glen Tullman , who previously begin Livongo , a inveterate condition management party Teledoc acquire for$18.5 billion in 2020 .
The company also recently introduced an AI political program that answers member ’ questions about coverage , offers clinical info and connects them with medical stave as needed .
financing and rating : In May , the company raised a $ 450 million Series D at a $ 2.2 billion rating contribute by General Catalyst and 7wireVentures .
