Investment firm W Health Ventures marks its faith in India's burgeoning healthcare industry by setting up a fresh fund dedicated to backing promising startup ventures
W Health Ventures, a venture studio specialising in the healthcare sector, has announced the launch of its second fund with a target size of $100 million (Rs 874 crore). The fund aims to invest in startups offering AI-enabled B2B healthcare services, with a particular focus on the India-US corridor.
The dual track "found and fund" investment strategy, discussed by managing partner Pankaj Jethwani in May, will continue to be employed. This strategy involves identifying promising startups and incubating them internally before providing strategic capital and operational support.
The fund targets high-impact healthcare sectors such as oncology, longevity, psychiatry, geriatric care, and preventive health. W Health Ventures plans to support 8–10 startups over the next four years by employing its "company creation" model, where ideas are developed and validated internally before external founders lead the companies.
Typical initial investments range from $3 million to $5 million per startup, with similar follow-on funding planned. This shift from diversified VC investments towards concentrated, larger bets on fewer companies differentiates W Health Ventures from traditional VCs.
The firm will leverage AI-enabled solutions to bridge the gap between India and US healthcare markets. One example of this approach can be seen in EverHope Oncology, a cancer care provider that W Health Ventures has already invested in from the second fund.
India's healthcare sector is valued at over $370 billion in 2023 and is projected to exceed $600 billion by 2026. The growth in the sector is driven by increasing demand for specialized services across various sectors. W Health Ventures aims to overcome challenges in this sector, such as regulatory hurdles and slow adoption, by providing operational support and startup infrastructure via its venture studio 2070 Health.
From its first fund, W Health Ventures deployed over $60 million, investing in companies like chronic pain management clinic chain Nivaan, parenting platform Mylo, diabetes management platform BeatO, paediatric platform BabyMD, mental health services startup Wysa, and healthtech firm Reveal HealthTech. The firm has invested in a total of 12 companies across India and the US.
With this new fund, W Health Ventures aims to build a portfolio of 8-10 companies, making a significant impact in the AI-led healthcare services sector. The fund will also shift to a multi-LP structure, reflecting its commitment to transparency and collaboration.
[1] https://www.yourdomain.com/news/w-health-ventures-launches-second-fund-focusing-on-ai-led-healthcare-services [2] https://www.yourdomain.com/news/w-health-ventures-announces-dual-track-found-and-fund-strategy [3] https://www.yourdomain.com/news/w-health-ventures-invests-in-everhope-oncology-from-second-fund [4] https://www.yourdomain.com/news/w-health-ventures-aims-to-overcome-challenges-in-indias-healthcare-sector
- W Health Ventures, with its new focus on AI-led health-and-wellness sectors, aims to collaborate with startups offering services in oncology, longevity, psychiatry, geriatric care, and preventive health, as part of its plan to build a significant portfolio.
- By employing the "company creation" model, W Health Ventures aspires to make a substantial impact in the science sector, developing and validating ideas internally before external founders lead the companies, particularly in the India-US corridor.
