Define Ventures Closes Two New Funds at $460M for Early-Stage Digital Health Startups

Amid a difficult environment for digital healthcare startups, Define Ventures announced it has raised $460 million through two funds – Fund III and Opportunities Fund – to invest in early-stage companies.

The San Francisco-based venture capital firm invests in incubation, seed, series A and series B stage startups, and, with roughly $800 million in assets under management it’s one of the few Silicon Valley firms focused solely on early-stage digital health startups.

Fund III will focus on new investments and Opportunities Fund will support its existing partners.

Led by Lynne Chou O’Keefe, founder and managing partner, Define Ventures’ investment strategy centers on partnering with startups that are serving multiple ecosystem partners, such as consumers, payers, providers, employers and life-sciences companies.

“The healthcare system is evolving rapidly as multiple healthcare, technology and consumer trends converge, and even with the progress over the last few years, it remains a $4 trillion market opportunity that desperately needs greater digital transformation,” said O’Keefe.

Define Ventures currently backs 21 companies including women’s health startup Tia, health and wellness brand Hims & Hers, virtual LGBTQ+ care provider Folx Health and mental health company Concert Health.