October 21, 2025 - Trends

VCs, Health Systems Incubate Medicine 3.0

Innovation moves in house.
Doctors assessing scans

Venture capital is moving from the boardroom to the bedside.

The latest: Khosla Ventures partnered with Cleveland Clinic to pilot and scale emerging healthcare technologies.

All-access. The firm’s portfolio companies gain direct clinician and patient access for testing, validation, and commercialization — spanning AI, digital health, therapeutics, and diagnostics.

Beyond pilots, the pair will co-incubate new concepts, combining Khosla’s technical talent with Cleveland Clinic’s infrastructure.

New playbook. Instead of betting on ideas, venture firms are embedding startups in health systems — aligning incentives, accelerating adoption, and sharing upside.

Innovating from the inside out, Cleveland Clinic joins a growing list of VC-provider partnerships reshaping healthcare’s operating model.

  • General Catalyst acquired Summa Health to test its portfolio in house.
  • Redesign Health and Cedars-Sinai formed a joint venture to co-create startups.
  • Targeting novel therapeutics, a16z teamed with Eli Lilly for a $500M biotech fund.

Looking ahead: A step in the right direction, startup x healthcare partnerships can spark innovation. But without systemic reform, the sector will likely struggle to turn promise into measurable outcomes.

Joe Vennare
Joe Vennare
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