A-Squared Ventures is a digital health venture capital firm backed by the Arkin family and focused on early-stage healthcare technology companies. Based in Israel, the firm initially launched its Arkin Digital Health fund in 2020 with $20 million provided solely by the Arkin family. Building on strong early performance, A-Squared has expanded its capital base and institutional partnerships to become a specialized Seed investor in software-led healthcare solutions across Israel and the United States.
A-Squared Ventures invests in early-stage digital health startups developing software and AI-driven solutions for the healthcare industry.
Its portfolio includes companies working on clinical decision support, care delivery optimization, patient monitoring, data and analytics, and other tools that help reduce costs and mitigate workforce shortages in health systems. The firm backs Israeli and U.S. founders who combine deep technological capabilities with growing commercial and regulatory expertise.
In 2025, A-Squared Ventures raised a new $40 million fund dedicated to early-stage digital health startups, effectively its second vehicle after Arkin Digital Health. Unlike the first fund, which was financed exclusively by the Arkin family, this new fund brings in a broader institutional LP base.
It is anchored by continued commitments from the Arkin family and joined by Vintage Investment Partners, a global multi-billion dollar fund-of-funds and direct investor, as well as Harel Insurance, one of Israel’s major institutional investors. The strategy of the new vehicle is to continue backing early-stage digital health companies in Israel and the U.S., with a focus on software platforms that increase system efficiency, address clinician shortages, and leverage AI to improve care quality and outcomes.
According to the fund’s managers, the new capital allows A-Squared to address a structural gap in the market: there is a shortage of dedicated Seed capital in digital health, as many specialized funds have moved to later stages. A-Squared’s new fund is designed to step into that gap by writing initial checks of $1–2 million, partnering with founders as early as possible, and then following on in subsequent rounds.
The fund builds on the track record of its predecessor, which has already assembled a portfolio of promising digital health companies and delivered strong early results despite a challenging fundraising environment for the sector.
Leadership
The fund is managed by Dr Nadav Shimoni and Sam Cronin. Dr Shimoni brings a mix of clinical understanding and sector-specific investment experience, while Cronin contributes a strong background in digital health investing and company building. Together, they manage A-Squared under the broader umbrella of Arkin Capital and maintain close alignment with the Arkin family’s long-term vision for healthcare innovation.
Investment Strategy
A-Squared Ventures focuses on Seed-stage opportunities where it can be one of the first institutional backers and help shape the company’s trajectory from the ground up. The firm’s strategy centers on software-led solutions that can be deployed efficiently, scaled globally, and that directly address key pain points in healthcare such as cost inflation, staff shortages, and operational inefficiencies.
A-Squared seeks companies with strong technical and product foundations and works with founders on go-to-market design, evidence generation, and integration into health systems. Leveraging Arkin Capital’s infrastructure, the fund aims to deploy capital quickly at the earliest stages while retaining the capacity to support portfolio companies through multiple financing rounds.
Notable Investments
Through its first fund, A-Squared (under the Arkin Digital Health banner) has invested in a range of Israeli and U.S. startups including:
All of them developing software solutions for the healthcare industry with a focus on data-driven care, workflow efficiency, and AI-enhanced clinical and operational tools.
Notable Exits
Specific exits from A-Squared’s digital health portfolio have not been publicly disclosed, but the managers highlight strong results from the first fund over its initial five-year period, achieved despite challenging market conditions for early-stage digital health startups.
Other
A-Squared Ventures benefits from Arkin Capital’s broader platform, which gives portfolio companies access to industry relationships, follow-on capital support, and healthcare-specific expertise.
The firm positions itself as a disciplined, focused Seed investor at a time when many funds have shifted upmarket, which can make it an attractive first institutional partner for digital health founders.
Israel’s emergence as a hub with more than 700 digital health companies reinforces A-Squared’s deal flow and provides a strong base for companies aiming to scale to the U.S. and other global markets.
For founders, the combination of Arkin’s long-term capital, sector specialization, and a clear mandate to invest at the earliest stages is a key differentiator.
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