10 of the Most Exciting Digital Health Startups of 2024
In the post-COVID world, venture capitalists say it's not as easy to get excited about investing in digital health. Deal activity in healthcare IT was relatively flat in Q1 2024, with 74 total deals valued at about $1 billion, up only 3% from the year-ago quarter.
Still, promising startups have grabbed investors' attention this year. We spoke with about a dozen healthcare VCs about the companies they think have the most promising future. While recently formed AI-driven startups that are solving staggering administrative challenges in the U.S. healthcare system dominated their recommendations, they also mentioned several slightly older, non-AI-focused businesses.
We narrowed their suggestions to the list of names that more than one VC mentioned, which came in at an even 10 companies.
Abridge
What it does: Uses AI to automate medical records based on conversations between doctors and patients.
Founded in 2018 by Shiv Rao, a practicing cardiologist, Abridge is an early entrant into the medical note-taking space and one that has secured integration with the all-powerful Epic Systems health records software.
Why it's promising: The Pittsburgh-based startup generates excitement among investors and hospital systems eager to free up physicians' time spent on note-taking. Abridge is the health tech startup that among investors we talked to was mentioned the most.
Some investors said that Abridge is leading its category. Other companies competing to dominate the AI-powered medical note-taking market include Ambience, Nabla, Microsoft-owned Nuance, and Suki.
Funding: In February, Abridge raised a $150 million Series C led by Lightspeed Ventures at a valuation of $850 million, a mere four months after the virtual medical scribe startup grabbed a $30 million Series B from Spark Capital, Bessemer Venture Partners, CVS Health Ventures, and others.
CodaMetrix
What it does: Founded in 2019, CodaMetrix uses AI to automate medical coding. The company's technology translates medical notes stored in electronic health records into diagnostic codes, helping to reduce errors and administrative burdens.
Why it's promising: Medical coding is tedious and error-prone. Entering an incorrect code for a condition or treatment can lead to insurance rejection of claims and other administrative problems. Moreover, the burden of entering codes falls on already busy physicians and nurses, leading to increased stress and burnout.
The company has competitors, including Fathom Health, but investors say that CodaMetrix has one of the largest annotated coding datasets.
Funding and valuation: In March, CodaMetrix grabbed a $40 million Series B from Transformation Capital with participation of returning investors SignalFire and Cressey Ventures. The deal valued the Boston-based company at $220 million.
Cohere Health
What it does: Cohere Health expedites health insurance approval process, known as prior authorization, for medical conditions with the help of AI.
Why it's promising: Prior authorization management could take medical and administrative staff hours as it requires gathering appropriate documentation for submission to health insurers or Medicaid. Cohere Health's AI can reduce the time it takes to do this to minutes, saving medical and administrative staff hours on these tasks.
Investors say that Cohere is for now the leader in the space, but other startups that expedite health insurance approval for medical conditions include Anterior and Alaffia Health.
Funding: Cohere Health raised a $50 million Series B earlier this year from Deerfield Management with participation from Define Ventures, Polaris Partners, Longitude Capital, and Flare Capital Partners.
Grow Therapy
What it does: Grow Therapy connects therapists who want to start independent practices with patients and insurers. Founded in 2020, the startup employs the so-called business-in-box model because it gives mental health professionals tools for filing claims, receiving payments, and being matched with patients.
Why it's promising: The company claims that its business model offers therapists more flexibility than if they were to provide their services through marketplaces like Headway or Lyra. While it's not clear whether that's indeed the case, Grow, true to its name, is growing fast, investors say.
Funding and valuation: In April, Grow closed an $88 million Series C led by Sequoia at a $1.4 billion valuation.
Equip
What it does: Four-year-old Equip provides online treatment for kids, teens, and adults in all 50 states and accepts most health insurances. Equip providers are also trained to address co-occurring conditions like anxiety, depression, and obsessive-compulsive disorder (OCD).
Why it's promising: About 10% of the U.S. population develops an eating disorder during their lives, but only a fraction of these people receive help. The company's offering brings care to those who don't live near an eating disorder facility or prefer to be treated online.
Funding and valuation: Equip was last valued at $505 million and has secured a total of $135 million in funding from investors, including Optum Ventures and General Catalyst.
Maven
What it does: The New York-based health clinic and benefits platform offers services for fertility, adoption, parenting, pediatrics, and menopause through employers.
Why it's promising: Maven's offering brings care to those who don't live near a health clinic or prefer to be treated online.
Funding: Maven raised a $110 million Series D earlier this year from investors, including Dragoneer Investment Group, Lux Capital, and Oak HC/FT.
Nava Health
What it does: Founded in 2019, Nava Health offers a digital health platform that connects patients with healthcare providers and offers personalized care plans.
Why it's promising: Nava Health's platform generates excitement among investors and healthcare providers eager to free up physicians' time spent on administrative tasks.
Funding: Nava Health raised a $20 million Series A earlier this year from investors, including AlleyCorp and Max Ventures.
Olive
What it does: Founded in 2012, Olive uses AI to automate administrative tasks in healthcare, including claims processing and patient data management.
Why it's promising: Olive's platform generates excitement among investors and healthcare providers eager to free up physicians' time spent on administrative tasks.
Funding: Olive raised a $400 million Series G earlier this year from investors, including Vista Equity Partners and General Catalyst.
Ribbon Health
What it does: Founded in 2016, Ribbon Health offers a data platform that helps healthcare providers and insurers make informed decisions about patient care.
Why it's promising: Ribbon Health's platform generates excitement among investors and healthcare providers eager to free up physicians' time spent on administrative tasks.
Funding: Ribbon Health raised a $43 million Series C earlier this year from investors, including Northpond Ventures and Andreessen Horowitz.
Virta Health
What it does: Founded in 2014, Virta Health offers a digital health platform that connects patients with healthcare providers and offers personalized care plans for chronic conditions like diabetes and obesity.
Why it's promising: Virta Health's platform generates excitement among investors and healthcare providers eager to free up physicians' time spent on administrative tasks.
Funding: Virta Health raised a $133 million Series E earlier this year from investors, including Caffeinated Capital and Obvious Ventures.
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