Andreessen Horowitz has shifted its digital health investment strategy to focus on earlier-stage deals. We look at where it has placed its recent bets.
Andreessen Horowitz (a16z) is showing less interest in digital health nowadays.
The prominent VC went from participating in 20 deals (worth $2.8B in total) in 2021 to just 10 deals (worth $341M) in 2022. In 2023 so far, the firm has only participated in 3 digital health deals (worth $120M).
Andreessen Horowitz’s reduced digital health investment reflects a more challenging funding environment for startups — with investors far less inclined to back mid- and late-stage deals at the sky-high valuations that were common during 2021’s funding boom.
In fact, all of the firm’s digital health investments since 2022 have been seed, Series A, or Series B rounds. Among these investments, two categories have dominated: care delivery and navigation tech and nutrition management apps.
However, the firm is still willing to make substantial bets on healthcare in some cases. For example, it co-led a $50M seed round in May 2023 for generative AI startup Hippocratic AI — the third largest seed round the firm has participated in.
Using CB Insights data, we analyzed a16z’s digital health investments since 2022 and mapped them across categories like clinical trials tech, health data platforms, and more.
