Top 8 Healthcare Investors in Tennessee in 2026: VC & PE Firms

The top healthcare investors in Tennessee are Nashville-based venture capital and private equity firms, including Heritage Group, Pharos Capital Group, Frist Cressey Ventures, and Mountain Group Partners, that write checks ranging from roughly $500,000 for early-stage rounds up to $50 million for later-stage healthcare deals. Tennessee's healthcare ecosystem is booming, with major players like HCA Healthcare headquartered in Nashville, and the city has become a hub for healthcare innovation.

Despite this explosive growth, many healthcare startups struggle to secure funding. Investors tend to favor proven models, making it tough for early-stage companies to get the capital they need to scale.

Aside from the major players, Tennessee also has a strong network of investors based in Tennessee who actively fund seed and early-stage healthcare startups.

In this article, we'll introduce you to the top 8 startup investors in Tennessee who can help turn your healthcare idea into reality.

Top 8 VC and PE Firms in Tennessee That Invest in Healthcare Startups

Here's a table to summarize the list quickly.

Heritage Group

• Website: heritagegroupusa.com

• Focused Sectors: Exclusively invests in the healthcare industry. Areas of focus include healthcare services and health IT

• Funding Stages: Majority and minority equity investments, typically $20 to $40 million per portfolio company, in growth-stage healthcare services and technology businesses

• Notable Investments: Spero Health, ScribeAmerica, ClearDATA, and MDLIVE

• Total Investments: More than 100 healthcare companies since founding

Heritage Group is a Nashville-based, healthcare-focused investment firm founded in 1986 by Rock Morphis and David McClellan. The firm makes majority and minority equity investments exclusively in healthcare services and technology companies addressing challenges across the U.S. healthcare system.

In 2021, Heritage closed its third fund at more than $300 million, an increase of roughly $100 million over its prior 2016 fund. Over more than three decades, the firm's partners have collectively invested over $1 billion across more than 100 healthcare companies.

Heritage seeks entrepreneurs building healthcare providers, medical software, HIPAA-compliant data management, and personalized care solutions, and typically writes checks of $20 to $40 million per portfolio company. You can browse the wider pool of 42,000+ healthcare-focused investors on AngelMatch if Heritage isn't the right stage fit.

Pharos Capital Group

• Website: pharosfunds.com

• Focused Sectors: Primarily healthcare and healthcare-related business services.

• Funding Stages: Later-stage growth and buyout investments in lower-middle-market companies, typically $25 to $50 million per deal.
  Notable Investments: Seaside Healthcare, IASIS Healthcare, Medfinders (Nursefinders)

• Total Investments: 58 companies since inception, with more than $1 billion in assets under management

Pharos Capital Group is a physician-founded private equity firm established in 1998 by Dr. Kneeland Youngblood and Bob Crants, based in Dallas and Nashville.

The firm specializes in investing in growing healthcare companies that aim to improve patient outcomes, increase access to care, and lower healthcare costs, with a particular focus on rural and underserved markets.

Pharos is currently investing out of Pharos Capital Partners IV/IV-A, a middle-market healthcare fund, and reports more than $1 billion in total assets under management as of 2023.

Pharos Capital Group seeks companies with defensible market positions, sustainable competitive advantages, and unique business models. They typically invest $25 to $50 million in rapidly growing middle-market companies seeking later-stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations.

Mountain Group Partners

• Website: mtngp.com

• Focused Sectors: Early-stage life sciences and disruptive technology. This includes human and animal health (e.g. diagnostics, medical devices, drug development)

• Funding Stages: Seed and early-stage venture investments.

• Notable Investments: Aspire Health, Castle Biosciences, G1 Therapeutics, and Silicon Ranch

• Total Investments: Dozens of companies since 2002
  

Mountain Group Partners (MGP) is a Nashville-based venture capital firm founded by Joseph Cook Jr., a former CEO and serial healthcare entrepreneur, specializing in early-stage investments across the Life Sciences, AgTech, and Technology sectors.

The firm's leadership includes co-founders Joe Cook Jr. and Joe Cook III, along with managing directors focused predominantly on early-stage life sciences, diagnostics, and medtech companies. Investors have held board seats through the IPOs of portfolio companies including Castle Biosciences and Clearside Biomedical.

Mountain Group Partners typically focuses on early-stage companies with innovative solutions in life sciences, diagnostics, and healthcare technology, guiding portfolio companies through funding rounds and public market exits.

Claritas Capital

• Website: claritascapital.com

• Focused Sectors: Invests in healthcare, technology, and media/entertainment companies.

• Funding Stages: Venture and growth capital, typically $2 million to $5 million per company, structured as debt or equity.

• Notable Investments: Genomind, StudioNow, and Sharecare. Total Investments: 75+ portfolio companies, deploying more than $1 billion of capital to date

Claritas Capital is an alternative investments firm based in Nashville, Tennessee, founded in 2002 by Founder and Managing Partner John Chadwick.

Since its inception, Claritas Capital has deployed over $1 billion in capital across private equity, venture capital, real estate, and debt investments, with a current portfolio of more than 75 companies spanning healthcare, technology, and media/entertainment.

Claritas Capital seeks collaborative partnerships with founders, entrepreneurs, developers, and strategic partners. The firm's venture team typically provides $2 million to $5 million in investment capital to companies with an established business model in healthcare, technology, or media/entertainment.

Clayton Associates

• Website: claytonassociates.com

• Focused Sectors: healthcare (healthcare IT) and technology companies.

• Funding Stages: Seed, angel, and early-stage venture rounds (with some growth-stage follow-on).

• Notable Investments: WebMD (health information platform) and Sharecare (digital health engagement platform)

• Total Investments: More than 80 operating companies across five venture funds

Clayton Associates is a Nashville-based investment firm founded in 1996 by R. Clayton McWhorter, a prominent figure in the healthcare industry, along with Stuart McWhorter and Bill F. Cook. The firm specializes in seed, angel, and venture-stage investments, primarily targeting the healthcare and technology sectors.

Since its inception, Clayton Associates has managed five venture capital funds and invested more than $150 million across more than 80 operating companies in the Southeast. They operate through different investment platforms, such as Bullpen and FCA Ventures.

Moreover, Clayton Associates seeks startups with experienced management teams that have a strong business model and solve modern healthcare problems through tech.

Altitude Ventures

• Website: altvc.com

• Focused Sectors: Early-stage healthcare services and digital health.

• Funding Stages: Primarily Seed and Series A rounds (early-stage).

• Notable Investments: 180 Health Partners, Opya (autism therapy telehealth platform), and Nest Collaborative

• Total Investments: Dozens of investments with multiple exits

Altitude Ventures is a venture capital firm headquartered in Nashville, Tennessee, with a regional office in Houston, Texas, and roots in the family office of the late Clayton McWhorter, former Chairman and CEO of HCA.

The firm specializes in early-stage investments in healthcare services and digital health companies across North America, leveraging its combined industry expertise, relationships, and infrastructure to support portfolio companies.

The firm focuses on investing in startups that improve healthcare through innovative services and technologies, prioritizing experienced management teams and scalable business models.

Martin Ventures

• Website: martinventures.com

• Focused Sectors: Healthcare and Technology.

• Funding Stages: Venture Capital and Growth Equity, typically $2 million to $4 million per company.

• Notable Investments: Livara, Wellvana, and Trilliant Health

• Total Investments: 100+ investments

Martin Ventures, founded in 2009 by healthcare executive Charlie Martin, is a Nashville-based investment firm and family office. They invest in healthcare technology-enabled services and SaaS-based businesses.

Martin Ventures invests in early-stage businesses that have a strong idea base and well-experienced founders with market knowledge.

For growth-stage companies, the firm seeks those with meaningful annual recurring revenue and strong year-over-year growth. Their primary interest lies in healthcare technology-enabled services and SaaS-based businesses that do not require FDA or regulatory approval.

The average check size of Martin Ventures is between $2 million and $4 million. If your startup needs help sizing a round before approaching Martin Ventures or similar firms, AngelMatch's Funding Goal Calculator can help you land on a number.

Frist Cressey Ventures

• Website: fcventures.com

• Focused Sectors: Exclusively healthcare services, digital health, and healthcare technology.

• Funding Stages: Seed through growth-stage healthcare investments.

• Notable Investments: Praia Health, Monogram Health, and Vim

• Total Investments: 44+ investments since 2016, including 14 exits, with $846 million in assets under management

Frist Cressey Ventures is a Nashville-based venture capital firm founded in 2016 by former U.S. Senate Majority Leader Bill Frist, M.D., and private equity veteran Bryan Cressey. The firm invests exclusively in healthcare, backing technology and tech-enabled service companies that advance quality of care, system integration, patient outcomes, and access.

In February 2026, Frist Cressey Ventures closed its fourth fund at $425 million, bringing the firm's total assets under management to roughly $846 million. The firm has made more than 40 investments since founding, with portfolio companies including Praia Health, Monogram Health, and Vim.

Frist Cressey Ventures typically invests across seed through growth-stage rounds, concentrated in the Southeast and Nashville region, though its portfolio companies operate nationwide. Since the firm invests almost entirely in Nashville-area healthcare startups, it's a strong first call for founders building in Middle Tennessee.

Wrap-Up

Summing it all up, the most important aspect for securing a funding check is research.

For instance, Pharos Capital Group is an experienced private equity firm with large investment ranges. But for an early-stage founder? They likely won't be able to schedule a meeting, let alone get funding.

Likewise, it's important to research your investor's:

• Investment range

• Preferred industry

• Portfolio companies

• Board members

Once you've narrowed your list, a sharp pitch deck from firms that have already raised can help you understand what these investors expect to see before you reach out. Good luck!

FAQ: Healthcare Investors in Tennessee

How much do Tennessee healthcare investors typically invest?

Check sizes vary widely by firm and stage. Venture-focused firms like Martin Ventures and Claritas Capital typically write $2 million to $5 million checks, while later-stage private equity firms like Pharos Capital Group and Heritage Group invest $20 million to $50 million per deal.

Do these firms only invest in Nashville-based startups?

No. Most of these firms are headquartered in Nashville but invest nationally, particularly Pharos Capital Group, Martin Ventures, and Frist Cressey Ventures, whose portfolio companies operate across the United States. Being based in Tennessee can still help with introductions and local diligence.

What stage of healthcare startup do Tennessee investors fund?

It spans the full range. Mountain Group Partners, Clayton Associates, and Frist Cressey Ventures back seed and early-stage companies, while Pharos Capital Group and Heritage Group focus on later-stage growth and buyout deals in established healthcare businesses.

Why is Nashville a hub for healthcare investing?

Nashville is home to HCA Healthcare and a dense network of healthcare operators, executives, and family offices who cycle capital and expertise back into new healthcare companies, which is why so many of the region's investment firms are healthcare-exclusive.