Announcing Acrew’s Health Thesis
Over the years, Acrew has made a dozen+ investments in Health and earlier this year we officially broke the area out into its own area of sector focus. We believe now is the best time ever to be building software and automation in health, powered by data. This wave of AI-led software will improve end-user experience across the board and, we believe, drive down cost. Further, healthcare should be of high quality, personalized, and still scalable. We are particularly excited to be a small part of the movement towards positive change in US healthcare by investing behind founders and their teams building companies today. We believe there will be myriad several billion dollar companies built in the space.
Health joins Data & Security and Fintech as the three sectors of Acrew’s focus. As the Acrew team, we endeavor to show up prepared to talk to founders who live and breathe their industries. And we think that there is strong overlap among our three areas (e.g., many of the health founders with whom we partner will tap the knowledge of our data infra & cyber networks).
Below, we summarize our market observations and investment thesis and link here a version of a slide deck we walked through with our LPs (our investors) earlier this year.
On Market
A non exhaustive list of some of the trends that are leading to market readiness include: costs continue to spiral up, buyer (provider, payor, life sciences) attitudes towards software and automation have meaningfully improved, regulation and regulatory enforcement are supportive of new solutions, more and more healthcare data is being created, the data is available and data systems are interoperable, providers face staffing shortages, administrative burden is crushing aspects of the healthcare system, and there are major business model shifts afoot.
On Thesis
Acrew’s thesis in health can be summarized by the slide we pulled out of the deck:
On Us and a Snapshot of our Relevant Portfolio
We’re actively seeking to partner with founders who are passionate about addressing issues in healthcare in our country. This year alone, Acrew has made three early stage investments in healthcare software, including Abett & Cornerstone.AI (as well as one unannounced healthcare data company). We’ve invested in companies like Solv, SteadyMD, Kintsugi, RapidSOS, and Tomorrow Health, among many other companies in the space.
Acrew is investing $1–15MM to lead Seeds & As out of our early stage fund and $10–20MM to invest in Series Bs and Cs out of our inflection stage fund.
If you’re a founder building in this space, we look forward to speaking to you.
