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The health-tech industry is undergoing a massive transformation, driven by AI, telemedicine, digital health solutions, and data-driven diagnostics. With global healthcare spending projected to reach $12 trillion by 2025, health tech startups have a huge opportunity to revolutionize patient care and operational efficiencies. However, securing pre-seed funding remains a significant challenge for many early-stage health-tech founders.
Despite a surge in venture capital interest in healthcare innovation, raising pre-seed capital requires more than just a groundbreaking idea. Health-tech startups must demonstrate market validation, compliance with regulatory frameworks, and scalability potential to attract the right investors. In 2023, over $2 billion was invested in Indian health-tech startups, highlighting the strong appetite among investors for solutions that bridge healthcare gaps and improve patient outcomes.
This guide explores how health-tech startups can secure pre-seed funding, covering investment sources, industry trends, investor expectations, and key strategies to increase funding success.
Health-tech startups often require significant capital at the pre-seed stage to cover product development, regulatory approvals, clinical trials, and initial market validation. Unlike consumer tech startups, where MVPs can be built quickly and iterated upon, health tech companies face longer development cycles, complex compliance requirements, and high operational costs.
Pre-seed funding plays a vital role in:
With global digital health funding surpassing $50 billion in 2023, pre-seed investors are looking for high-potential health-tech startups that address critical healthcare challenges and offer scalable solutions.
Health-tech startups have access to a variety of funding sources, each with distinct advantages. Choosing the right investors and programs can accelerate startup growth and provide critical industry mentorship.
Angel investors play a key role in early-stage health-tech funding, offering capital along with strategic industry connections and mentorship. Many angel investors are experienced healthcare professionals, biotech entrepreneurs, or senior executives in the pharmaceutical and medical device sectors.
Several angel networks specialize in health-tech investments, such as HealthTech Angels, BioAngels, Indian Angel Network (IAN), and Mumbai Angels. These investors typically look for startups working on breakthrough medical innovations, AI-driven diagnostics, and preventive healthcare solutions.
Related: Top 15 Pre-Seed Angel Investors in India
Venture capital firms that specialize in health-tech investments offer early-stage funding, business development support, and regulatory guidance. Leading global health-tech VCs include a16z Bio + Health, Rock Health, Bessemer Venture Partners, and SOSV IndieBio. In India, firms such as HealthQuad, Axilor Ventures, and Fireside Ventures are actively investing in digital health startups.
These VCs are looking for startups that demonstrate clinical validation, regulatory readiness, and scalable business models. Startups that collaborate with hospitals, insurance providers, or government health programs often have a stronger chance of securing venture funding.
Several accelerator programs focus exclusively on health-tech and med-tech startups, providing pre-seed funding, mentorship, and networking opportunities. Some of the most recognized programs include Y Combinator Bio, Startup Health, Mayo Clinic Platform Accelerate, and Google for Startups: Health-Tech Edition.
Indian health-tech startups can benefit from C-CAMP (Centre for Cellular and Molecular Platforms), NASSCOM CoE for IoT & AI, and IIM-Ahmedabad’s CIIE Health-Tech Incubator. These programs help startups navigate clinical trials, medical device approvals, and commercial scalability.
The Indian government actively supports health-tech startups through various funding grants, research collaborations, and startup initiatives. The Startup India Seed Fund Scheme (SISFS) provides equity-free grants to early-stage startups working in digital health, AI-powered diagnostics, and affordable healthcare solutions.
Additional funding opportunities include BIRAC (Biotechnology Industry Research Assistance Council) grants, NIDHI-PRAYAS for medical research startups, and DST (Department of Science & Technology) funding for health-tech innovations. Startups working on public health initiatives and rural healthcare access can also apply for Ayushman Bharat digital health grants.
Many pharmaceutical companies, hospital chains, and med-tech giants invest in early-stage health-tech startups to gain access to disruptive healthcare innovations. Companies such as Johnson & Johnson Innovation, Pfizer Ventures, and Medtronic Ventures actively invest in digital therapeutics, AI-driven diagnostics, and next-gen medical devices.
Indian hospital chains like Apollo Hospitals, Max Healthcare, and Manipal Hospitals have launched startup collaboration programs, providing funding, clinical trial support, and hospital integration opportunities.
Securing pre-seed funding for a health-tech startup requires a combination of strong industry expertise, regulatory preparedness, and market validation. Unlike traditional tech startups, health-tech founders must demonstrate clinical viability, compliance with healthcare regulations, and early traction with hospitals or medical institutions. Investors look for scalable, impact-driven solutions that address critical healthcare challenges, making it essential for startups to refine their pitch and align with the right funding sources.
Investors place a high emphasis on founding teams with deep healthcare expertise. Health-tech startups should include medical professionals, data scientists, AI engineers, and regulatory experts to ensure credibility. A well-balanced team demonstrates the ability to navigate clinical complexities, regulatory approvals, and commercialization hurdles.
Unlike other tech startups, health-tech businesses must prove medical accuracy, patient safety, and compliance with strict regulations. Startups should proactively seek clinical partnerships with hospitals, conduct pilot studies, and secure necessary certifications. Demonstrating strong regulatory planning increases investor confidence and de-risks investment decisions.
Pre-seed investors prefer startups that demonstrate early traction through partnerships, pilot programs, and initial revenue models. Securing MOUs (Memorandums of Understanding) with hospitals, government agencies, or insurance providers can significantly strengthen an investment pitch.
Health-tech founders should also leverage real-world case studies, testimonials from medical professionals, and preliminary clinical trial results to establish credibility. Investors are more likely to fund startups that showcase measurable patient outcomes, cost savings, or efficiency improvements in healthcare workflows.
Securing pre-seed funding for a health-tech startup requires a targeted investor outreach strategy. Startups should focus on investors with experience in healthcare, life sciences, or medical technology. Participating in health-tech-focused pitch events, investor roundtables, and global healthcare summits increases visibility among relevant investors.
Founders should refine their pitch deck to highlight regulatory milestones, intellectual property (IP) protection strategies, and business scalability. Addressing potential investor concerns such as data security, clinical efficacy, and go-to-market hurdles can strengthen funding prospects.
Raising pre-seed funding for a health-tech startup requires a well-structured business model, regulatory readiness, and strong industry validation. Startups that focus on clinical partnerships, investor networking, and strategic market positioning stand a better chance of securing early-stage capital.
As the global healthcare sector continues to evolve, investors are increasingly seeking scalable, tech-driven healthcare solutions. By leveraging angel networks, health-tech accelerators, and government funding opportunities, health-tech startups can access the capital and mentorship needed to scale successfully.
Choosing the right investors is a critical decision for health-tech startups. The ideal investors offer more than capital they provide insights, industry connections, and operational expertise relevant to the healthcare sector. Here are key criteria to consider:
-AI and Machine Learning: These technologies will continue to make inroads into diagnostic processes, treatment protocol development, and patient monitoring, making healthcare more precise and efficient.
– Telemedicine: Accelerated by the pandemic, telemedicine will expand further, reducing physical barriers to healthcare access, especially in remote and underserved regions.
– Wearable Health Tech: Devices that monitor health stats in real-time will become more sophisticated, playing a crucial role in preventive medicine by tracking vital signs and detecting anomalies early.
– Blockchain: The adoption of blockchain technology could revolutionize health information exchanges, enhancing data security and patient privacy.
These innovations, driven by startups and supported by venture capital, are paving the way for a more integrated, tech-driven healthcare system that is both resilient and responsive to the needs of the modern patient.
Multiply Ventures is a VC fund that focuses on early-stage consumer tech startups. They aim to invest in and support ambitious entrepreneurs launching products and services for the large Indian market. Their approach is all about being passionate, committed, and empathetic.
They focus on investing in financial services, health care, and FinTech, mainly at the very beginning stages of their development, in places like India and South Africa.
JIIF is a platform for JITO members that gives firsthand access to the Indian and global startup ecosystem. JITO‘s Incubation and Angel Network Arm focuses on fostering entrepreneurship. JIIF has completed 6 years and now has an active member base of 1000 Jain investors from the JITO Network. In total, their investments amount to upwards of Rs. 150 crores in 80+ early stage companies, and they have incubated 50 Jain Founder start-ups.
Pre-seed funding for health-tech startups typically ranges from ₹50 lakh to ₹5 crore ($60,000 to $600,000), depending on factors like market potential, regulatory requirements, and investor confidence.
While full regulatory approval may not be necessary at the pre-seed stage, startups should demonstrate a clear regulatory roadmap. Having clinical validation, compliance plans, and early-stage certifications (such as HIPAA, Ayushman Bharat Digital Mission, or CE marking) increases investor confidence and funding prospects.
Health-tech startups face unique challenges such as longer product development cycles, complex regulatory approvals, high R&D costs, and investor concerns about clinical efficacy. To overcome these, founders should showcase strong market validation, early partnerships with hospitals or insurers, and a clear path to monetization.
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
