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Meet the 5 top VC firms that placed the most bets on upstarts providing medical care online

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Vinod Khosla

Summary List Placement

The telehealth bust isn't going to materialize, if the surge of private-investor interest is any indication.

Telehealth startups raised a record-shattering $5 billion in private funding in the second quarter of 2021, according to a new CB Insights report. That represents a 17% increase from the first quarter, which also broke records, and it's almost twice as much as they raised in the same period of 2020.

Telehealth use surged during the pandemic when doctors' offices closed and patients avoided clinics out of fear of contracting the coronavirus. However, some doctors and hospital executives believed telehealth use would plummet once patients were more comfortable coming back in person, leading to a growth plateau for many of the companies that provide the technology that makes telehealth possible.

While telehealth usage has come down from its pandemic-era peak, telehealth companies are pushing new hybrid models that allow doctors to see patients in person and virtually on a case-by-case basis. The convenience factor for patients is a huge draw, and it also allows some doctors better flexibility and work-life balance.

The majority of private funding for telehealth startups came from five investment firms in the United States. The top firm overall was General Catalyst, which participated in 28 deals including Sword Health, Stork Club, and Oath since late 2018. 

The 5 most active investment firms in telehealth have made 98 combined bets since 2018:

  • General Catalyst, which has raised $7 billion, has made the most investments in telehealth startups since 2018. It has backed 28 startups, including Sword Health, Stork Club, MD Ally, Sesame, and Oath.
  • Optum Ventures is the $600 million venture arm associated with insurance giant UnitedHealth Group. It has backed 24 telehealth startups, including Brightline, LetsGetChecked, Medallion, Heartbeat, and Kaia Health.
  • Oak HC/FT is a $3.3 billion VC firm that specializes in healthcare and fintech. Since 2018, it has backed 23 telehealth startups, including Syllable, Brightline, Cerebral, Noom, and Firefly Health.
  • Khosla Ventures is a private VC firm with $14 billion under management. It has backed 23 telehealth startups since 2018, including Hello Heart, Q Bio, Sword Health, Forward, and Ginger.
  • Peter Thiel's Founders Fund has $15.9 billion under management and invests across a range of technology industries. It has backed 21 telehealth startups since 2018, including Sword Health, Q Bio, Forward, and Modern Health.

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