Transformation Capital is a Boston- and San Francisco-based venture and growth equity firm founded in 2016, dedicated exclusively to digital health. The firm describes itself as the largest dedicated digital health venture and growth equity investor, with more than $2.5 billion in assets under management across four funds. Its portfolio spans 50+ companies, including Datavant, Sword Health, Grow Therapy, and SmarterDx.
Transformation Capital invests in commercial-stage digital health and AI-driven healthcare technology companies.
The firm's thesis centers on three pillars: efficiency, reducing administrative and operational waste; accessibility, expanding access to care; and accountability, tying investments to measurable clinical and financial outcomes.
The firm points to roughly $1 trillion in waste and inefficiency across U.S. healthcare as the opportunity AI-driven technology is positioned to address.
Transformation Capital closed Fund IV at an $850 million hard cap in summer 2026, exceeding its original target in an oversubscribed raise.
The fund drew a mix of returning limited partners and new institutional investors, though specific LPs were not disclosed.
The close brings the firm's total assets under management to more than $2.5 billion across four funds, and follows eight new AI-focused investments made in the past year.
Leadership
Investment Strategy
Transformation Capital targets commercial-stage healthcare companies applying AI to reduce cost and improve the quality of care, combining venture and growth equity capital with a dedicated Partner Acceleration team that supports portfolio companies post-investment.
Notable Investments
Todd Cozzens — Co-Founder & Managing Partner
todd@transformcap.com
Jared Kesselheim, M.D. — Managing Partner
jared@transformcap.com
Scott Rosen — General Partner
scott@transformcap.com
Layla Behrouzian — Partner
layla@transformcap.com
Akanksha Mehta — Principal
akanksha@transformcap.com
United States
