W Health Ventures has unveiled its second fund, committing $70 million to a unique approach focused on building healthcare startups from the ground up. Through Fund II, the firm will support 8–10 companies over the next four years by actively ideating, testing, and scaling concepts in-house before bringing in external founders to take the lead.
Departing from the conventional venture capital strategy of diversifying across many startups, W Health Ventures aims to take more focused bets, initially investing $3–5 million in each startup, with a similar allocation reserved for follow-on funding. The total fund size could expand to $100 million by its final close.
“Fund II really doubles down on our company creation model,” Dr. Pankaj Jethwani, Managing Partner at W Health Ventures, said. “It’s something that we’ve built through a lot of trial and error over the last several years.”
The firm’s debut fund, launched in 2020, invested in 12 companies, including BeatO (diabetes management), Mylo (parenting), BabyMD (pediatrics), and Wysa (AI-powered mental health support). The firm, with support from its venture studio partner 2070 Health, internally built many of these companies.
In W Health’s model, the team conducts in-depth interviews with physicians and patients, rigorously validates the ideas, and brings them to market only after confirming their real-world relevance and viability. “Ninety-three percent of our ideas get killed,” Jethwani said. “The kind of conviction we’re able to build before we launch a company makes us go all in.”
W Health made its first Fund II investment in EverHope Oncology, a joint venture with Narayana Health that aims to transform cancer care in India by delivering advanced diagnostics, building state-of-the-art treatment facilities, and implementing standardized clinical protocols. “The journey of a patient with cancer – if you have all the means in the world – might be average at best. If you don’t, life is very hard,” said Jethwani. “It doesn’t have to be this way.”
The firm is also betting on AI to help oncologists stay current with fast-evolving research and treatment options. “It is impossible for a human to stay up to date. That is a very important role that AI can play.”
The second portfolio company, currently operating in stealth, is developing a managed services platform for psychiatry clinics in the U.S., initially targeting treatment-resistant depression. The asset-light model integrates automation, AI, and offshore talent to streamline clinical operations and reduce overhead.
W Health’s investment thesis centers on two core themes: focused, single-specialty care models tailored for the Indian market, and AI-driven B2B services designed for global healthcare ecosystems. “India is the world’s pharmacy,” said Jethwani. “We believe AI-enabled healthcare services will be India’s biggest gift to the world after pharma.”
The launch of Fund II comes at a time when venture capital fundraising is showing signs of revival. Following a subdued 2024, several India-focused and global VC firms—such as Accel, Bessemer Venture Partners, A91 Partners, and Prime Venture Partners—have rolled out new funds this year.
Others, including Nexus Venture Partners and Fireside Ventures, are actively raising capital, signaling a cautious but growing optimism in the private investment landscape. W Health’s new fund underscores a broader shift among venture capital firms toward more focused, thesis-driven investment strategies, as they re-enter the market following the slowdown in 2024.
