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US Firm Raises $70M to Incubate Indian Healthcare Startups
30 Jul
Summary
- W Health Ventures raising $70M for second India-focused fund
- Fund to support 8-10 seed and early-stage healthcare startups
- Investing $3-5M per company, with additional capital for follow-ons
- Focus on single-specialty care delivery and AI-enabled B2B services
US venture capital firm W Health Ventures is looking to raise $70 million, or about Rs 610 crore, for its second India-focused fund to support the development of healthcare startups in the country. The fund will partner with 2070 Health, a healthcare venture studio, to invest in 8 to 10 seed and early-stage companies over the next four years.
W Health plans to invest Rs 26-40 crore ($3-5 million) per startup, with additional capital reserved for follow-on funding. The firm's company-creation model offers infrastructure, capital, and operational expertise from the incubation stage, which it believes is particularly suited for the healthcare sector due to its inherent challenges.
The new fund will focus on two core themes: single-specialty care delivery platforms and AI-enabled business-to-business (B2B) healthcare services. The first theme will back startups offering high-quality, efficient care in specific medical specialties, while the second will target B2B companies catering to the growing demand from US-based healthcare firms for technology solutions powered by India's talent pool.
