Spurred by the COVID-19 pandemic, Swiftarc Ventures is launching a $75 million fund focused on telehealth and digital health. 

“So much of ongoing patient care can utilize available and upcoming modern technology – and there’s no reason healthcare delivery needs to be stuck in the dark ages," Fabian Urquijo, president of Swiftarc Ventures, said in a statement. "Our brain trust of thoughtful investors and stakeholders from the healthcare ecosystem, including leading physicians, healthcare administrators and technologists – all are a testament to our timing to provide a deliberate and platform-based lift to modern telemedicine in key select areas.”

WHAT IT'S FOR

The fund, dubbed Swiftarc Telehealth, will initially focus on obesity, mental and behavioral health and pediatrics, sectors the VC firm considers "relatively overlooked" in telehealth delivery.

Swiftarc said it spent a year studying the space to decide on these clinical focus areas, considering the total addressable market – current and projected adoption, reimbursement landscape and regulatory environment.

The VC will also consider companies in remote patient monitoring, chronic care management and in-home diagnostics. 

“We feel good about participating in areas of healthcare that have been historically underserved. Being curious, impactful and deliberate are the three core tenets with which we began.

"Our goal is to fundamentally disrupt standard, antiquated healthcare delivery models and to find innovative solutions to improve access to high-quality care, ultimately reshaping the patient healthcare experience forever,” Sid Jawahar, founder and managing partner at Swiftarc Ventures said in a statement.

MARKET SNAPSHOT

Telehealth utilization shot up during the pandemic as providers and patients avoided unnecessary in-person interactions. The digital health space has also been raking in investments. A report by CB Insights found startups scored $57.2 billion in funding globally in 2021. 

Mental and behavioral health is one area with plenty of competition. Last year, meditation app Headspace and digital mental health company Ginger merged to form Headspace Health. The combined company recently announced the acquisition of Sayana, another player in the mental wellness field. Last week, employer-focused mental health company Lyra Health raised a whopping $235 million in Series F funding. 

Weight management is included in platforms like Omada Health, DarioHealth, One Drop and Onduo, which also include care for comorbid conditions like diabetes or hypertension.

Players in the pediatric care space include Brightline, DotCom Therapy, Goodside Health, Brave Care and KixCare.