We are thrilled to share the close of our second fund, “V2”, at $55.75 million!
Founded in late 2021, our intent was to address a crucial gap in the U.S. healthcare venture ecosystem by focusing exclusively on pre-seed and seed-stage founders. Despite healthcare’s dominance in the U.S. economy, early-stage founders in this sector often struggle to find specialized capital partners. We aim to fill this void by combining deep domain expertise, a founder-first investment philosophy, and a disciplined focus on opportunities poised to enhance the entire healthcare value chain.
In V2 we intend to continue partnering with exceptional pre-seed and seed healthcare founders as an additive lead or co-lead partner. Our check sizes will range from $1 million to 2 million across 25 companies over the next three years.
We partner with founders in their earliest financing rounds to tackle the real, intractable problems that continue to hinder the broader healthcare ecosystem. By leveraging technology, creative ingenuity, and relentless determination, we believe a new crop of founders can now solve complex challenges where prior attempts may have fallen short. We are honored to have the unwavering support of our best-in-class Limited Partners – and specifically our anchor Cendana Capital – for allowing us to deepen our commitment to the next generation of healthcare founders.
Fund II follows the promising performance of our inaugural fund, which has thus far achieved a 100% Series A graduation rate — exceeding the market average of roughly ~20% in healthcare between 2021 and 2024. In the last three years, Virtue’s Fund I portfolio companies – such as SmarterDx, Evvy, Mural Health, Anna Health, among others – have collectively raised over $225 million, reaching a combined valuation of over $1 billion.
A huge thank you to those founders who said “yes” to us as we were getting off the ground: Priyanka, Laine and Pita (Evvy), Erik and Mariza (Zocalo), Stas and Sonia (Amae), Michael and Josh (SmarterDx), Xing and Yang (Seen Health), Sam (Mural Health), Brian and Marc (Hero Journey Club), Aaron and Coco (Tuva Health), Shubh and John (Integral), Shaju and Deepak (32 Health), Jamo and Michael (Rightsite Health), Gerald and Nick (ValleySteer), Simon and John (Ryght AI), Aris and Yiwen (Solstice Health), Hari and Matt (WriteWise), Aimun (Anna Health), Jon and Ian (Clara Health), Sadiqa (Prudentia), Judah and Brian (Health MC), Olivier and Saad (ZoomLogi) and several more!
Our stage and sector specialization allows us to meaningfully support a range of startups that are reshaping how healthcare is delivered, financed, and coded. In an industry rapidly embracing AI-native technologies, our investments reflect a commitment to those founders reimagining processes previously plagued by inefficiency, fragmentation, and outdated systems.
We are at an important moment in healthcare, fueled by the convergence of rapid AI breakthroughs, shifting policies and regulatory landscape, pressure to modernize antiquated operating systems and unlock valuable clinical data assets, rising costs of care and life saving drugs, and an evolving cultural sentiment that demands more from our healthcare system. These forces — combined with ongoing shifts within the venture market — are creating compelling opportunities for company formation at the earliest stages, making this the most exciting corner of the healthcare sector today.
Now back to work,
Sean & Emre
And for the record it is just ‘Virtue’ : )
