Best Cities for Healthcare Startups in the US
- July 14, 2021
- Posted by: Dr Vinati Kamani
- Categories: Healthcare App Development, Healthcare Technology
The HealthTech landscape is currently witnessing an era of tremendous advancements. HealthTech startups in the US are harnessing the power of technologies such as artificial intelligence, machine learning, cloud computing, blockchain, robotics, telemedicine and connected medical devices to further the advancement of data driven healthcare delivery.
While Silicon Valley is the first thought of somebody thinking of startup hubs in the USA, the MedTech landscape in the country is quite diverse.
After studying the geographical distribution of the top 100 HealthTech startups in the country, their funding, valuations and acquisitions, the availability of talent in the region, and presence of research institutes and hospitals in the area, here are the top 10 cities in the US that are pioneering innovation in the field of healthcare.
Survey Methodology
We complied data about the funding information, investments, mergers and acquisitions from platforms such as Crunchbase and Tracxn.
Our data scientists and team of researchers then leveraged this data and using our more than a decade of experience in the field of healthcare software development, our team classified the startups on the basis of the innovation in healthcare they were focusing on for determining the top HealthTech startup hubs in the US.
1. San Francisco, California
San Francisco is the undisputed HealthTech capital in the US. 23 percent of the top MedTech companies are headquartered in the city. With a total of 1,149 startups, San Francisco is pioneering in the field of healthcare technology.
The city not only holds the world’s top tech talent pools, but it is a region where the nation’s tech investments are centered around.
San Francisco is home to 150 startup accelerators and incubators. Out of these, Alchemist Accelerator and Rock health are venture capital firms with a focus on HealthTech startups.
SF not only has the highest concentration of HealthTech startups, it is also the home to some of the best funded startups in the US.
Top funded startups in San Francisco
| Verily | $1.80 Billion |
| Insitro | $743 Million |
| Freenome | $507.6 Million |
2. Silicon Valley, California
Silicon Valley serves as the global centre for technology and innovation. Cities in this world-renowned valley include: Campbell, Cupertino, Gilroy, Los Altos, Los Gatos, Morgan Hill, Redwood City, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale.
Startups headquartered in Silicon Valley are breaking new ground in the fields of artificial intelligence, mHealth, machine learning, telemedicine and genomics.
With the amalgamation of tech talent that’s available in the silicon valley and medical talent from University of California San Francisco and Stanford School of Medicine, Silicon Valley provides a conducive environment for HealthTech innovation.
Silicon Valley also has a robust network of venture capital firms like Khosla Ventures (based out of Menlo Park) which has made 53 investments in healthtech startups in the last 10 years.
In addition to that, silicon valley is home to a number of renowned startup incubators, accelerators and venture capital firms like Andreeson Horowitz, Felicis Ventures, Benchmark, and Accel Partners which have huge stakes in MedTech startups.
Top funded startups in Silicon Valley
| Grail | $2 Billion |
| Lyra Health | $675.1 Million |
| Proteus Digital Health | $517 Million |
3. Chicago, Illinois
Chicago is an emerging HealthTech hub. The city is the epicentre for leading minds throughout the care process. It is also the headquarters of American Medical Association and American Hospital Association.
Chicago also has multiple teaching hospitals with the number of total residents and fellows per capita.
The presence of tech savvy medical professionals with an entrepreneurial mindset forms the perfect opportunity for development of Chicago as a health-tech hub within the US. Total 422 HealthTech companies have Chicago as their headquarters.
Here are the top funded HealthTech startups in Chicago.
| Tempus | $1.1 Billion |
| GoHealth | $913.5 Million |
| Outcome Health | $500 Million |
4. New York City, New York
New York is home to 399 HealthTech companies. A major reason for that is that the early stage startups have access to funding from NYC’s incubators while established ones get to further their capital with startup accelerators.
A number of venture capitalists, incubators and accelerators are focusing on the MedTech segment in New York City.
New York Digital Health Accelerator, Blueprint Health, Startup Health are some of the names that are focused on investments in the HealthTech sector. Boosted by this, New York-based MedTech startups are growing to be huge names in telehealth, biopharma, and clinical research.
Top funded startups in New York City are,
| Capsule | $560 Million |
| City Block Health | $491.3 Million |
| Flatiron | $313 Million |
5. Boston, Massachusetts
Boston provides a highly conducive environment for HealthTech startups. Early stage MedTech startups get their funding requirements met with a supportive network of incubators and accelerators such as Techstars, Cogo Labs and MassChallenge.
Boston is also home to some of the most innovative healthcare institutions including Massachusetts General Hospital, Brigham and Women’s, and Boston Children’s. These present great partnership opportunities for the MedTech startups.
Boston is the headquarters for 312 HealthTech companies. 10 out of the top 100 HealthTech startups in our list have their headquarters in Boston.
Top funded HealthTech startups in Boston
| Iora Health | $349.3 Million |
| Akili Interactive Labs | $300.9 Million |
| Path AI | $255.2 Million |
6. Cambridge, Massachusetts
The proximity to Boston and presence of abundant tech and medical talent from acclaimed universities such as Harvard, MIT, Boston University make Cambridge a sought after destination for HealthTech companies.
There are a total of 249 HealthTech startups in Cambridge. Out of our list of top 100 HealthTech startups, 7 have their headquarters in Cambridge.
Here are the 3 top funded HealthTech startups in Cambridge.
| XtalPi | $385 Million |
| Omega Therapeutics | $211 Million |
| Cellarity | $173 Million |
7. Los Angeles, California
Los Angeles, also known as Silicon Beach is home to world class universities and hospitals. With a growing number of health tech entrepreneurs and investors, and presence of tech talent necessary to develop and deploy innovative tech solutions, LA offers the perfect landscape for a boom in HealthTech innovation.
There are a total of 339 health tech startups in Los Angeles, California. Boosted by health-tech startup accelerators and incubators like Techstars Healthcare Accelerator and Cedars-Sinai, the MedTech startups in LA are getting the funding they need to carry out innovations in healthcare.
Top funded healthcare startups in Los Angeles.
| Headspace | $178 Million |
| Heal | $172 Million |
| Science 37 | $147.5 Million |
8. Seattle, Washington
Seattle has traditionally been a city thriving in biotechnology research and medical devices manufacturing. It is also recently moving into the digital health landscape and tapping into the unrealized potential in the field.
The abundance of artificial intelligence talent and wealth of enterprise software resources have primed Seattle for advancing as an HealthTech hub in the US.
There are a total of 139 HealthTech startups in Seattle. Here are the ones which have raised the maximum funding till date.
| 98point6 | $247 Million |
| Carbon Health | $172.5 Million |
| Bardy Diagnostics | $91.4 Million |
9. Nashville, Tennessee
Nashville, the city known for its culture and music is now an emerging center for healthcare technology. Nashville is home to 134 HealthTech startups and 17 publicly traded healthcare companies.
With incubators and accelerators such as Jumpstart Foundry, LaunchTN and Nashville Entrepreneur Center giving initial stage HealthTech startups the access to funding they need, Nashville is a promising hub for digital health innovation.
Here are the top funded HealthTech startups in Nashville
| Envision Healthcare | $750 Million |
| Care payment | $67.5 Million |
| Bridge Connector | $45.5 Million |
10. Salt Lake City, Utah
Salt Lake City is putting in huge efforts into developing itself into a digital health hub. With developments such as the BioHive initiative, setting up Life Science Corridor, laying groundwork for a new Healthcare Innovation Center under the Tech Lake City initiative, the city is prepping up to place itself on the US healthtech map.
The favorable business climate, quality of life, and phenomenal tech ecosystem present in Salt Lake City make it a magnet for upcoming HealthTech entrepreneurs and investors alike. There are a total of 70 Health Tech startups in Salt Lake City. Here are the ones that top the funding charts.
| Recursion | $465.4 Million |
| Sera Prognostics | $250.3 Million |
| IDbyDNA | $29 Million |
Closing words
With new players constantly entering the health-tech marketplace, the number of opportunities in the space is constantly rising and the competitive landscape is constantly evolving.
Top notch product and cutting edge innovation can help set companies apart from their competitors and carve out their own niche.
While knowing which cities are the best for healthcare startups is important, partnering with the right team is even more important.
With 10+ years of specialized experience in the field of healthcare software development working on a range of healthcare verticals including artificial intelligence, machine learning, telemedicine and mHealth, Arkenea is a trusted name when it comes to developing innovative and intuitive software solutions.
