Personal health is something that no one can ignore. Similarly, from a business perspective, the healthcare sector has been growing expeditiously. Health innovations and collaborations with the tech sector have led this sector to become as big as $1,500 Billion in the United States.

And since a large number of entrepreneurs have already realized the potential in the healthcare industry, we are now witnessing tons of startups getting funded and many angel investors funding healthcare ideas in California.

That is why, in today’s article, we will be discussing the list of the top healthcare investors in California. 

Top 8 VC Firms in California That Invest in Healthcare Startups

Following is the list of some of the top healthcare investors in California categorized according to their active involvement. 

Techstars

Website: Techstars Global Startup Network

Preferred Industries: Tech and Healthcare

Total Investments: 3,000+

Notable Investments: Data Robot, Classpass, and Chain Analysis

Techstars is a pre-seed investor that provides early-stage entrepreneurs with access to capital, mentorship, and other support. The network has been operating since 2006 and has become one of the biggest accelerators worldwide. 

The team of investors looks for innovative businesses that have little or no competition in the relative market. Techstars is also known to be highly active in California and Colorado, hosting several pitching competitions every year. Like most other firms, Techstars also has online selection criteria where startup leaders can fill out forms and get selected.

Aside from startup funding, Techstars is currently organizing 5-10 additional startup events including accelerators and workshops. They have several mentor and entrepreneur teams who guide startups when things don't turn out to be in their favor. The investment range of Techstars is around $10M.

Bessemer Venture Partners

Website: BVP

Preferred Industries: Consumer, Enterprise, Healthcare

Total Investments: 350

Notable Investments: Shopify and Yelp

Headquartered in Menlo Park, Bessemer Venture Partners is a famous venture capital firm that partners with startup leaders at the early and seed stages. Although most of the portfolio investments of Bessemer Venture Partners are in the early stage, they also participate in late-stage financings and occasionally make seed-stage investments.

Moreover, the firm is known for its rigorous screening tests as the investors are highly qualified and experienced. They look for the best startup leaders having ideas that can dominate the relevant industry. BVP has a track record with more than 145 IPOS from their portfolio companies. 

The investment range of Bessemer Venture Partners can go up to several million dollars, but there is no specific number as they invest in a wide range of sectors. 

Advanced Technology Ventures

Website: ATV

Preferred Industries: IT, CleanTech, Healthcare

Total Investments: 270

Notable Investments: Fuze and Nuvaira

Advanced Technology Ventures is a bi-coastal venture capital firm that was founded in 1979 and has been operating for more than 4 decades. Headquartered in Menlo Park, the venture capital firm is highly focused on tech and healthcare markets. They also have offices in Massachusetts and are actively investing in businesses that show a decent growth potential.

Discussing the investment strategies, ATV works with entrepreneurs who can bring positive change to the healthcare markets of California. The network usually invests in businesses that aren't just dealing with regular healthcare but are operating through the latest tech.

In 2024, Advanced Technology Ventures is all set to invest in ICT, bio-pharmaceuticals, and medical devices. Their investment range varies between $700,000 to $10M.

Delphi Ventures

Website: DV

Preferred Industries: Life Sciences

Total Investments: 170+

Notable Investments: Jambo and PTC Therapeutics 

Delphi Ventures is an early-stage venture capital firm and was one of the first VCs that started investing in life science companies. The network was founded 3 decades ago and has been helping startups in securing an investment.

Similarly, Delphi Ventures is known for its exceptional mentorship and startup guiding programs. The network doesn't just fund startups to get an ROI but they are also working towards improving the life science sector in the US. Their mission is to enable companies to expand therapeutic access for patients who need less invasive procedures. And that is why Delphi Ventures has funded more than $1 Billion since its inception and has invested in many big names in the respective sector.

The investment range of Delphi Ventures is around $300,000. 

Kleiner Perkins

Website: KP 

Preferred Industries: Tech and Life Sciences

Total Investments: 1,500+

Notable Investments:

Kleiner Perkins, formerly known as Kleiner Perkins Caufield & Byers (KPCB), is an American venture capital firm headquartered in Menlo Park. The VC firm is known to be one the oldest firms in California which was founded four decades ago (1979). 

When making investments, Kleiner Perkins funds across all stages of venture capital, including seed, early-stage, and late-stage expansion. Currently, the network is focusing on the life sciences, digital, and cleantech industries. The investors at Kleiner Perkins prefer startup leaders who are well-experienced and have already led a business. They also focus on startups that are innovative in the healthcare sector and can easily generate a decent ROI of 3-5%.

The investment range of Kleiner Perkins can range up to several million dollars, depending upon the startup. 

New Enterprise Associates

Website: New Enterprise Associates

Preferred Industries: Innovative Software, Fintech, Cleantech, Healthtech, Biotech, life sciences, and digital. 

Total Investments: 350+

Notable Investments: Patreon, MoneyTap, MasterClass, Coursera, Inkitt, Hyperion Therapeutics, Grid, DataBricks, Rapid Robotics, Upwork, Upstart, and Waymark

New Enterprise Associates (NEA) is also a famous American venture capital firm that invests in healthcare-based startups. Operating since 1979, NEA has invested in many innovative startups that have transformed over the years and are now known as some of the biggest healthcare names in the US.

Similarly, NEA makes series A, series B, series C, and series D investments. The investors arrange several pitching competitions annually and select startups that have the highest growth potential and an experienced team. Like most other VC firms in California, NEA also arranges many extra startup events to boost the entrepreneurial landscape.

The investment range of New Enterprise Associates isn't mentioned on their website as the network 

Khosla Ventures 

Website: Khosla (khoslaventures.com)

Preferred Industries: Tech and Healthcare

Total Investments: 500+

Notable Investments: Imply and Mirvie

Khosla Ventures is a venture capital firm founded in 2004 by Vinod Khosla. The network is headquartered in Menlo Park, California, and is actively funding healthcare-related businesses. The investors at Khosla Ventures have a strict focus on businesses that can achieve unsubsidized market competitiveness quickly. Scalability is also a big requirement and the services or products offered by the startup need to be cheap and innovative.

Moreover, Khosla Ventures arranges many pitching competitions and the investors from this firm make individual investments as well. The firm has a strong focus on growing the AI and healthcare market of California and is funding 5-30 startups every year. 

The investment range of Khosla Ventures lies between $500,000 to several million dollars, depending on the sector and ROI of the startup.

Right Side Capital Management

Website: Right Side Capital Management 

Preferred Industries: Software, SaaS, and Health Care 

Total Investments: 80

Notable Investments: ASETS, HLRBO, Precision Compounding, Arcadequest, Aropha, and Caden

Right Side Capital Management is a venture capital firm that focuses exclusively on the pre-seed stage of technology startups and healthcare startups. The network has been operating for more than 10 years and consists of around 13 investors who are well-experienced in the relative sectors.

When making investments, RSCM focuses on startups that are working on a unique product and have an in-depth understanding of the market. They also prioritize businesses with low competition and usually aim to invest in startups that can generate an ROI of 3-4%.

RSCM also has a dedicated mentorship panel and arranges many accelerator programs, helping startups find angel investors with an identical mindset. The average check size of RSCM is around $500,000.

Wrap-Up

And there, we have finally completed the list of top healthcare investors in California. However, an important point to note is that the healthcare industry is quite different from other startup sectors where most of the investors highly value ROI. 

In the healthcare sector, most VC firms or angel investors prioritize the quality of the product or service offered. This means that even if you don’t have the best scaling plan but your product has the potential to benefit the sector, there are VC firms that might invest and guide you throughout the whole process.

Regardless, it is still recommended to do due diligence and ensure that your pitch deck doesn’t lack anything.

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