Health Startup Fund Define Ventures Raises $460M To Transform The Future Of Medical Care

The venture capital market has dried up this year, but that doesn’t mean it’s doom and gloom across the board. Define Ventures recently raised $460 million across two of its funds to accelerate the growth of early-stage digital health investments.

As a venture capital firm focused exclusively on investments in incubation-, seed-, Series A- and Series B-stage health startups, Define Ventures has approximately $800 million under management. 

Digital health startups continue to make waves, with companies like Aura Health changing the way people receive care. Aura is an all-inclusive mental wellness application that provides users with access to a vast range of content, community and coaching services delivered by certified coaches and therapists worldwide. After five years in business, the platform has attracted 7 million users with annual recurring revenue of $7 million. 

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More From Define Ventures

With $800 million under management, Define Ventures isn’t new to the venture capital space. It backs more than 20 companies, including well-known brands such as Concert Health, Folx Health and Hims & Hers Health Inc. 

“The healthcare system is evolving rapidly as multiple healthcare, technology and consumer trends converge, and even with the progress over the last few years, it remains a $4 trillion market opportunity that desperately needs greater digital transformation," Define Ventures Founder and Managing Partner Lynne Chou O’Keefe said in an interview with Fierce Healthcare. “At Define Ventures, we are at the center of that convergence and combine the best of Silicon Valley thinking and deep healthcare operating experience to better understand how enterprise and consumer models will intersect to become the future of healthcare.”

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The Current State Of Digital Health Funding

In 2020, digital health funding reached $14.7 billion. This was followed by $29.3 billion in 2021 but a massive decline to $15.3 billion in 2022.

This year isn’t shaping up to be any better than last year. Through the first quarter, 2023 marks the slowest start since 2019. This is in large part because of Silicon Valley Bank's collapse coupled with an uncertain economy and financial markets.

Digital health funding is off to a rough start this year, but firms such as Define Ventures are optimistic about the future thanks to the number of innovative healthcare startups bringing new products and services to the market.

Companies such as Unite Us, a Define Ventures partner company, have found great value in its partnership. 

“Having Define's experience in helping companies scale across multiple categories from enterprise to consumer models was invaluable, and we look forward to continuing to partner with Define as we expand our impact on people's health in the community,” Co-founder and CEO Dan Brillman ​​said.

The direction of digital health funding in 2023 is a story to keep a close eye on. 

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