Venture firm W Health Ventures Establishes $70 Million Fund to Support Approximately 8-10 Health Technology Startups
W Health Ventures, a healthtech-focused venture capital firm founded in 2019 by Sunil Wadhwani, has made an investment in a yet-to-be-named psychiatry startup. This investment is part of W Health Ventures' strategy to focus on single-specialty clinical care delivery platforms and AI-enabled B2B healthcare services, aiming to address critical gaps in India's healthcare system.
The psychiatry startup will serve independent psychiatry establishments in the US market, helping them launch operations, streamline patient outcomes, and improve revenue and EBITDA margins. This investment is a significant step towards improving mental health care in the US, an area that has been under-addressed for a long time.
Focus on Oncology, Psychiatry, and Geriatric Care
W Health Ventures' focus on the psychiatry startup is part of a broader strategy to invest in oncology, psychiatry, and geriatric care. These specialties have been identified as areas with high unmet needs and significant growth potential.
In the case of oncology, India faces a rising burden of cancer, with gaps in affordable and accessible specialized care. Mental health, on the other hand, is an under-addressed area in India, with stigma, resource scarcity, and a lack of scalable solutions. As India’s population ages, geriatric care requires focused clinical platforms due to complex multi-morbidity management and inadequate care infrastructure.
Building Generational Healthcare Companies
W Health Ventures operates under a "company creation" model, where healthtech ideas are rigorously validated internally, then scaled with external founders. The firm aims to build generational healthcare companies through concentrated investments of $3–5 million initially per startup and focusing on these niche clinical specialties and AI-driven solutions for both the Indian and US markets.
Other Investments and Future Plans
So far, W Health Ventures has made two investments from its second fund, one in Everhope Oncology and another in the psychiatry startup mentioned above. Everhope Oncology, a collaboration between W Health Ventures and Narayana Health, aims to standardize, improve the quality of care, and streamline cancer patients' hospital experience, with a focus on innovations in chemotherapy, surgical oncology, cancer diagnostics, and ongoing supportive care for oncology.
With Fund II, W Health Ventures aims to back eight to 10 early-stage healthtech startups over the next four years. The average cheque size for investments with Fund II will be $3 Mn to $5 Mn. The first close of the fund is expected to happen in the next couple of months.
In addition to oncology and psychiatry, W Health Ventures also plans to back platforms that focus on areas such as longevity and preventive health. "It's very hard to make a business in preventive health anywhere in the world. In India, it's harder because insurance, most of the time, doesn't cover preventive health solutions and services," Pankaj Jethwani, managing partner at W Health Ventures, added.
W Health Ventures has a strong understanding of the market capabilities and talent ecosystem in India and is adept at comprehending the go-to-market opportunities and white spaces in the US. This understanding will be crucial in creating a bigger market impact.
Previous investments by W Health Ventures include mental health-focused Wysa, chronic disease management platform BeatO, sexual wellness-focused virtual clinic Mars by GHC, and community-based parenting startup MYLO among others. The portfolio startups served over 25 million patients globally, with an average ticket size of $1 Mn to $5 Mn.
The psychiatry startup is expected to make its official announcement next month. With this investment, W Health Ventures continues to make strides in improving healthcare delivery, particularly in the areas of oncology, psychiatry, and geriatric care.
The psychiatry startup, backed by W Health Ventures, will focus on mental health delivery in the US market, aiming to fill critical gaps through enhanced patient outcomes, improved revenue, and EBITDA margins for independent psychiatry establishments. Following this investment, W Health Ventures plans to bolster their portfolio in healthcare areas with high unmet needs and significant growth potential, such as oncology, psychiatry, and geriatric care.
