Newly Funded Companies by VC in the Health Industry (2025)

Overview

This document provides a comprehensive analysis of recent venture capital investments in the health industry as of 2025. The research covers six major venture capital firms:

1. Sequoia Capital
2. Andreessen Horowitz (a16z)
3. Accel
4. Lightspeed Venture Partners
5. New Enterprise Associates (NEA)
6. Y Combinator

Key Trends in Healthcare VC Funding (2025)

1. AI-Driven Innovation

• AI applications dominate recent healthcare investments, with a focus on:
  • Administrative automation (RapidClaims, Parallel, Cenote)
  • Clinical decision support (OpenEvidence, Hippocratic AI)
  • Medical coding and billing (RapidClaims, Parallel)
  • Patient-facing AI agents (Hippocratic AI)

2. Preventive and Proactive Care

• Shift from reactive to preventive healthcare models:
  • Full-body scanning technology (Neko Health)
  • Early disease detection (Guardant Health)
  • Sleep monitoring (Gem Health)

3. Value-Based Care Models

• Investments in companies transforming healthcare payment and delivery:
  • Kidney care (Strive Health)
  • Care management platforms (NeueHealth)
  • Price transparency (Turquoise Health)

4. Operational Efficiency

• Focus on reducing administrative burden and costs:
  • Revenue cycle management (RapidClaims, Silna)
  • Prior authorization automation (Silna)
  • Provider credentialing (Harbera)

Recent Investments by VC Firm

Sequoia Capital

OpenEvidence

• Focus: AI search engine for doctors
• Technology: Helps doctors find evidence-based answers to clinical questions
• Founders: Includes former Google Health and DeepMind researchers
• Approach: Combines large language models with medical knowledge to provide accurate clinical information

Avelios Medical

• Funding: Series A, €30 million
• Focus: Developing innovative medical devices
• Approach: Combines hardware and software solutions for healthcare applications

Bunkerhill Health

• Focus: AI algorithms for healthcare
• Technology: Machine learning for medical imaging and diagnostics
• Approach: Improves diagnostic accuracy and efficiency through AI

Gem Health

• Focus: Sleep care-focused startup
• Technology: Sleep monitoring and analysis
• Approach: Helps users improve sleep quality through data-driven insights

Andreessen Horowitz (a16z)

Biotech Ecosystem Venture Fund

• Funding: $500 million partnership with Eli Lilly
• Announced: January 14, 2025
• Focus: Therapeutic platforms and cutting-edge technology companies
• Investment Scope: Companies at all stages – from creation to growth
• Areas of Interest: New medicines, novel modality platforms, emerging health technologies
• Management: Managed by a16z Bio + Health
• Key Leadership: Vineeta Agarwala, M.D., Ph.D, general partner at a16z Bio + Health

Hippocratic AI

• Funding: $141 million Series B (January 2025)
• Valuation: $1.64 billion
• Total Funding: $278 million
• Other Investors: Kleiner Perkins (led Series B), General Catalyst
• Focus: AI-powered healthcare solutions for non-diagnostic patient-facing tasks
• Product: Safety-focused generative AI for healthcare, including AI agents for various healthcare scenarios
• Recent Development: Launched AI Agent App Store for Healthcare (January 2025)

Turquoise Health

• Recent Funding: $30 million Series B (January 2024)
• Lead Investor: Adams Street Partners (Series B)
• Previous Funding: $20 million Series A led by Andreessen Horowitz (May 2022)
• Total Funding: $55 million over 3 rounds
• Focus: Healthcare price transparency platform
• Product: End-to-end healthcare pricing platform and B2B marketplace for payor-provider contracting

Accel

RapidClaims

• Funding: $11 million Series A (April 2025)
• Focus: AI-driven revenue cycle management (RCM) platform for healthcare providers
• Founders: Dushyant Mishra (CEO), Jot, and Abhinay
• Problem Solved: Healthcare provider margins have shrunk from 10% to just 1-2% over the past decade, and claim denial rates have nearly doubled from 7% to over 13%
• Technology: AI-powered platform that automates medical coding, documentation, and claim submission processes
• Results: ≥95% coding accuracy, reduces costs by up to 70%, and cuts A/R timelines from 20 days to just 5

Silna Health

• Funding: \(27 million total (\)22 million Series A co-led by Accel and Bain Capital Ventures, $5 million seed round in August 2023)
• Announced: March 25, 2025
• Focus: AI-powered Care Readiness Platform focused on prior authorizations
• Name Origin: “Silna” means “sewn” in Urdu, representing how the platform stitches together disparate billing workflows
• Founders: Jeff Morelli (previously at Truework and Nightingale), Sagar Jajoo (first product hire at Truework), and Pavel Asparouhov (early engineer at Ramp)
• Technology: LLM-powered platform that automates administrative processes like benefits verifications, eligibility checks, claim adjudications, and prior authorizations
• Traction: Works with dozens of customers nationwide; helped over 50,000 patients get care (doubled in Q1 2025 alone)

ResiDex Software (via Accel-KKR)

• Investment: Majority investment from Accel-KKR (January 23, 2025)
• Headquarters: Minneapolis, MN
• Focus: Purpose-built EHR software platform for assisted living and senior care providers
• Product: RTasks - a fully integrated set of features to create effective workplace systems for assisted living organizations and group homes
• Market Opportunity: North American assisted living software market was valued at approximately \(17.97 billion in 2023 and is projected to reach \)33.55 billion by 2031, growing at a CAGR of 8.3%
• Demographic Tailwind: The 65+ age population is expected to grow from 56.1 million people in 2020 to 73.1 million by 2030, representing a 30% increase over 10 years

Lightspeed Venture Partners

Neko Health

• Funding: $260 million Series B (January 2025)
• Valuation: $1.8 billion
• Lead Investor: Lightspeed Venture Partners
• Other Investors: General Catalyst, O.G. Venture Partners, Rosello, Lakestar, and Atomico
• Founders: Hjalmar Nilsonne and Daniel Ek (co-founder of Spotify)
• Focus: Preventative healthcare technology using AI-powered body scans
• Technology: Proprietary scanning technology that captures millions of data points across multiple health dimensions
• Traction: Completed over 10,000 scans with a waitlist of over 100,000 people (achieved with zero paid marketing)
• Impact: Approximately 1% of patients scanned are identified with serious, potentially life-threatening conditions, while another 7% discover significant health conditions that require attention

Guardant Health

• Initial Investment: Series C in 2014 led by Lightspeed Venture Partners
• Total Funding: $557 million raised over 6 rounds from 25 investors
• Other Investors: Sequoia Capital, Khosla Ventures, OrbiMed, Formation 8
• Founders: Helmy Eltoukhy (co-CEO) & AmirAli Talasaz
• Founded: 2011
• Status: Public company (IPO)
• Focus: Precision oncology through blood tests for cancer detection and treatment guidance
• Technology: Blood tests that uncover clues to help doctors discover cancer early and find the best way to treat it
• Traction: Over 500,000 blood tests performed by 12,000 doctors to date

New Enterprise Associates (NEA)

NeueHealth

• Acquisition: $1.3 billion take-private deal (January 2025)
• Structure: NEA will purchase the company for \(1.3 billion; shareholders receive \)7.33 per share in cash
• Background: NEA already owned approximately 60% of the company before the acquisition
• Leadership: Mike Mikan (President and CEO) expected to remain in place
• Focus: Care management company (formerly known as Bright Health)
• Business Areas: Florida clinics and ACO REACH business
• Financial Context:
  • The company had $1.4 billion of debt
  • Actual cash outlay to the 36% of shares held by public shareholders is $21 million
  • Last quarter posted a net loss of \(40 million and negative earnings per share of \)8.51
• Membership: Currently 509,000 members

Strive Health

• Funding: $166 million Series C (2023) led by NEA alongside CVS Health Ventures
• Previous Funding: $140 million growth financing led by CapitalG (2021)
• Focus: Value-based kidney care
• Approach: Works with providers and payors to care for patients with kidney disease in a value-based setting
• Technology:
  • CareMultiplier™: A kidney disease-specific, machine learning technology that helps clinicians create individualized care plans
  • Predictive analytics platform that provides insights to slow patients’ kidney disease progression
• Impact:
  • Over 20% reduction in the total cost of kidney care
  • 42% reduction in hospitalizations

Y Combinator

Parallel

• Funding: $3.5 million seed (April 2025)
• Lead Investor: Frst
• Other Investors: Y Combinator, Bpifrance, Kima Ventures, Better Angle, and several business angels
• Founders: Paul Lafforgue (ex-Meta and McKinsey) and Thomas Sohet (former CTO at Yago.be)
• Founded: Paris, 2024
• Focus: AI-driven automation tools for healthcare providers to reduce administrative burden in hospitals
• First Product: AI agent for medical coding that reads clinical documentation, identifies appropriate codes, and enters them directly into hospital systems
• Problem Solved: Hospital administrative inefficiencies account for up to 25% of total healthcare spending, with significant costs from manual data entry, outdated software systems, and lack of automation

Y Combinator W25 Batch Healthcare Startups

Paratus Health

• Focus: Conversational AI for pre-visit patient symptom collection
• Technology: Voice-enabled AI for patient intake

Cenote

• Focus: AI to automate clinic back-office tasks, such as scheduling and billing
• Approach: Addresses administrative overhead to improve operational efficiency

Harbera

• Focus: AI for provider credentialing
• Technology: Likely incorporates voice integration

Mecha Health

• Focus: AI to enhance medical imaging reporting
• Technology: Potentially incorporates voice features
• Approach: Advances imaging for clinical precision

HealthKey

• Focus: AI to match patients with clinical trials
• Approach: Improves clinical trial recruitment process

Amby Health

• Focus: AI copilot for Emergency Medical Services
• Approach: Supports real-time clinical decision-making

Toothy AI

• Focus: AI agents to streamline dental clinic operations
• Technology: Likely includes voice capabilities
• Approach: Addresses administrative overhead to improve operational efficiency

Conclusion

The healthcare investment landscape in 2025 is dominated by AI-driven solutions that address critical challenges in healthcare delivery, administration, and patient care. Major venture capital firms are investing heavily in companies that leverage artificial intelligence to reduce costs, improve clinical outcomes, and transform healthcare business models.

Key areas attracting significant investment include:

1. Administrative automation - Solutions that reduce paperwork, streamline billing, and automate coding
2. Preventive healthcare - Technologies that enable early detection and proactive health management
3. Value-based care enablement - Platforms that support the transition from fee-for-service to value-based care models
4. Voice-enabled AI - Conversational interfaces that improve clinical workflows and patient interactions

These investments signal a transformative period in healthcare, with technology poised to address longstanding challenges in cost, access, and quality of care.