Arkin family’s A-Squared Ventures launches $40M fund for digital health startups
New institutional investors join the follow-on vehicle, including Vintage Investment Partners and Harel Insurance.
A-Squared Ventures, the Arkin family’s digital health fund, has raised $40 million from institutional investors for a second fund focused on early-stage companies.
The new vehicle follows the firm’s first fund, Arkin Digital Health, launched in 2020, which raised $20 million from the Arkin family alone. The latest round includes investments from the Arkin family, Vintage Investment Partners (a $4.3 billion global fund that invests in venture capital and growth-stage technology companies), and Harel Insurance.
The fund will continue to be managed by Dr. Nadav Shimoni and Sam Cronin. The first fund invested in Israeli and U.S. startups developing software solutions for the healthcare industry, including Eleos, Rhino, Laguna, Siftwell, Nest Genomics, and Revisto, among others.
According to the fund’s managers, the focus on digital health stems from the potential to reduce costs and mitigate workforce shortages in the healthcare sector, while building new companies more efficiently through the use of AI-driven technologies. They also noted a shortage of dedicated Seed capital in digital health, as most sector funds tend to invest at later stages.
Dr. Shimoni said: “Our first fund was launched during one of the toughest periods for early-stage digital health startups, but through focus, discipline, and a strong partnership with Arkin, we achieved strong results in just five years. Israel has become a springboard for more than 700 digital health companies, with entrepreneurs increasingly demonstrating both technological and business expertise.”
He added: “Arkin Capital’s infrastructure enables us to invest optimally at the earliest stages, typically with an initial check of $1–2 million, allowing us to partner with companies as early as possible.”
