At Fierce Healthcare, we keep track of all the venture capital being funneled into the health tech and digital health industries.
Our fundraising tracker provides updated coverage of noteworthy digital health and health tech funding rounds, though we'll still profile exciting new companies and larger rounds that catch our eye in depth.
Do you have fundraising news to share? Email Senior Editor Heather Landi at [email protected].
Previous fundraising tracker updates can be found here and here.
SignalFire raises $1B to invest in AI startups
Early-stage venture capital firm SignalFire closed on $1 billion in new capital to fund applied AI companies. The raise for its fifth and largest fund brings its total assets under management (AUM) to approximately $3 billion.
The fresh capital will be deployed across SignalFireʼs Seed, Early, Executive-in-Residence (XIR), and Opportunities funds.
SignalFireʼs portfolio includes healthcare startups Grow Therapy, Health Gorilla, Bicycle Health, Codametrix, Elemy, Form Health, PayZen, Ro and Wellth, among others.
SignalFire uses data and AI to find and develop high-growth startups. It developed a proprietary machine learning platform, called Beacon AI, that analyzes data from 650 million individuals and 80 million organizations. Beacon AI uncovers market trends and talent intelligence that helps SignalFire investors and portfolio companies find and build exceptional teams, products, and businesses, the firm said.
As many established VC firms shift toward late-stage investments and diversified strategies, SignalFire remains dedicated to AI founders at the earliest stages (pre-seed through Series B), helping them grow from ideation to industry leadership.
In many cases, the firm aims to be the “first checkˮ for applied AI startups — backing founders as early as possible through initiatives like its AI Lab incubation program and Beacon AI, according to executives.
"Our investors see what we see — applied AI is the defining opportunity of our time. With this new capital, weʼre doubling down on the next generation of category-defining AI startups tackling the worldʼs biggest challenges. Backed by our proprietary AI platform and deep operational expertise, we equip founders with the tools, data, and support they need to scale breakthrough companies faster," said Chris Farmer, founder & CEO of SignalFire.
Hellocare.ai nabs $47M for AI-assisted virtual care
A handful of health systems are backing a startup that developed an artificial intelligence-enabled virtual care solution to monitor patients in hospital rooms.
Hellocare.ai picked up $47 million in what it described as an oversubscribed funding growth round. HealthQuest Capital led the round with backing from Bon Secours Mercy Health, UCHealth, OSF Ventures and LRVHealth.
The startup says its technology has been deployed at more than 70 health systems.
Hellocare.ai's technology supports smart hospital rooms and enables health systems to deliver AI-assisted virtual nursing, virtual sitting and virtual consultation services as well as hospital-at-home. The technology also enables ambient documentation and AI-powered patient engagement services.
The company says it offers a "fully in-house technology stack"—encompassing hardware, software, AI, and an EHR integration engine. "Paired with AI and flexible hybrid clinical care team models, hellocare.ai empowers health systems to rapidly scale hybrid care, deliver high-quality care from anywhere, and create a truly patient-centric experience—all through a single, unified platform," company executives said in a press release.
Hellocare.ai says its replacing fragmented point solutions and delivering "meaningful" ROI. AdventHealth is rolling out hellocare.ai across more than 50 hospitals and over 13,000 patient rooms as part of an enterprise-wide implementation.
Both Bon Secours Mercy Health and UCHealth invested in the round and are also customers.
Our partnership with hellocare.ai will allow us to improve safety, reduce readmissions, optimize staff workflows and improve patient experience in our hospitals," said Mark Townsend, M.D. chief clinical digital ventures officer, Bon Secours Mercy Health and Accrete Health Partners. "Investing in novel digital health technologies enables our health system to be at the forefront of digital transformation, with the intent of making health care as easy as possible for patients and providers."
Thatch pockets $40M for personalized health benefits
Startup Thatch helps employers offer individual coverage health reimbursement arrangements (ICHRA), which enables employees to choose their own health benefit plans.
The company banked a $40 million series B funding round, led by Index Ventures and joined by Andreessen Horowitz, General Catalyst, ADP Ventures, SemperVirens, PeopleTech Partners, and The General Partnership. ADP, the largest payroll provider in the world, also partners with Thatch and has joined as an investor.
In a blog post, Thatch said the fresh funding will help the company to "double down on its vision to make health benefits personal, portable, and accessible for every American."
"We’re investing in deeper integrations with insurance carriers and payroll systems, expanding our team, and spreading the word that there’s a new way to do healthcare," the company said.
Thatch also brought on Gary Daniels, the former CEO for UnitedHealthcare’s Pacific Northwest division, as its Chief Growth Officer.
The startup launched in 2023 with the aim of offering personalized health benefits that decouples health insurance from employment.
Thatch claims it now works with more than a thousand companies — from fast-growing startups to established enterprises — to offer a better, more modern healthcare experience for their teams. "We also work with most major healthcare brokerages and consultants, and have developed partnerships with large HRIS systems like QuickBooks to distribute Thatch to millions of small businesses," the company said.
In September, Thatch secured $38 million, backed by Andreessen Horowitz (a16z) and General Catalyst.
The ICHRA insurance option became available in 2020 and allows employers to provide tax-free dollars for employees to purchase their own health insurance plans. Thatch's platform offers a user-friendly interface that simplifies the complex process of healthcare benefit management for both employers and employees, according to the company.
Thatch's approach moves away from the traditional one-size-fits-all that characterizes most employer-sponsored health benefits plans, noted Adam Stevenson, co-founder at Thatch in an interview last year.
Employees can then choose their health, dental and vision benefits based on their own medical needs. If employees spend less than their budgeted amount on insurance, they receive a Thatch Visa debit card they can use to pay for healthcare costs, like prescriptions, copays and therapy.
Revenue automation company Silna Health banks $27M
Silna Health uses artificial intelligence to manage prior authorization, benefit checks and eligibility verification. The startup, which launched in 2023, snagged $27 million in total funding to fuel its growth.
The company’s $22 million series A round was co-led by existing investors Accel and Bain Capital Ventures, with participation from angel investors, including the co-founders of Ramp, Opendoor, Truework and Eight Sleep. The series A follows a previously unannounced $5 million seed round led by Accel and Bain Capital Ventures.
Silna Health is pioneering front-end revenue cycle management (RCM) to the benefit of doctors, patients and insurers. The company claims its platform reduces the time required for pre-visit processes like insurance verification from 30 minutes to 30 seconds and it has helped more than 50,000 patients get faster access to treatments like behavioral therapy, rehabilitation and hospice care.
The company also claims it has cut insurance approval times from weeks to just four hours, maintaining a 99.8% success rate that far exceeds industry standards. The company operates nationwide and its tools are used by Applied Behavior Analysis (ABA) centers, occupational therapy clinics and cardiac rehabilitation facilities.
Layer Health collects $21M to revamp medical chart view with AI
Health tech company Layer Health picked up $21 million in series A funding to scale its AI-powered platform.
The series A round was led by Define Ventures with participation from Flare Capital Partners, GV and MultiCare Capital Partners.
With this new funding, Layer Health plans to expand its offerings, advance its AI models, and deepen partnerships with health systems and other ecosystem partners across the U.S. The company also plans to grow its team.
An AI company out of the Massachusetts Institute of Technology, Layer Health brings the first comprehensive chart review algorithm to market.
Layer Health is trying to solve one of the hardest clinical reasoning problems in healthcare: how to get the right treatments to the right patients at the right time. Layer’s large language model (LLM) can assess longitudinal patient data scattered across health records to understand the type of care the patient received and the outcome, executives told Fierce Healthcare in January.
The startup was founded by veteran AI and clinical leaders from institutions like MIT, Harvard, Microsoft and Google to tackle the challenge of extracting actionable insights from fragmented medical records.
Unlike traditional software solutions, which rely mostly on predefined rules, Layer Health’s AI reasons like a clinician across a patient's whole chart, allowing it to handle extremely nuanced and complex scenarios, executives claim. By reducing costs and enabling timely interventions, the technology empowers health systems to deliver better, more personalized care and create more revenue opportunities.
Use cases for Layer Health's platform include quality reporting and clinical registries, clinical research and real-world data abstraction, hospital operations and revenue cycle management and clinical decision-making and patient care optimization.
The company reports that its technology is driving significant results for its partners. Froedtert & the Medical College of Wisconsin health network used Layer Health’s technology to streamline quality data abstraction, reducing the time required by more than 65%.
Revenue cycle automation startup Notable Systems picks up $12M
Notable Systems provides a revenue cycle automation platform for medical equipment providers and pocketed $12 million in fresh funding to fuel its growth.
The company's AI solution is used by major durable medical equipment (DME) and home medical equipment (HME) companies to help streamline workflows and improve business operations.
The growth investment was led by Harbert Growth Partners and Grotech Ventures. The funding will fuel Notable Systems' continued expansion of its innovation and go-to-market teams as it scales to meet growing demand across the healthcare industry.
Clients include Enovis, Apria, XiFin and National Seating & Mobility.
Notable Systems uses AI-driven automation to improve medical documentation, turning it into clean, compliant claims with speed and accuracy. By automating complex, error-prone steps in the revenue cycle, Notable Systems helps its customers accelerate claims processing, collect revenue faster, and reduce denials, the company says.
The company recently launched the Payor Greenlight System (PGS), a medical criteria review engine that flags and resolves documentation issues before claim submission. PGS predicts with near 100% accuracy whether an order meets payor coverage criteria before submission, resulting in fewer denials, faster approvals, and maximum reimbursement potential for DME providers.
Over the past 18 months, Notable Systems has nearly tripled in both team size and customer base, executives said.
"This investment marks a defining moment for Notable Systems," said Steve Johnson, CEO of Notable Systems, in a statement. "We've built our reputation on delivering results—faster payments, fewer denials, and stronger connections between DME providers, patients, and referral sources. With Harbert's and Grotech's backing, we're scaling our impact while staying laser-focused on customer success."