TEXO Ventures

TEXO Ventures is an early-stage healthcare venture capital firm based in Austin, Texas, founded in 2009 to invest in and build innovative healthcare companies; its name derives from the Latin for 'to build with great care.' TEXO invests in the 'business' of healthcare rather than the 'science,' targeting companies at the convergence of Health IT and health services that use recurring-revenue models, require less capital to commercialize, are highly scalable and face fewer regulatory hurdles, and it is willing to lead. It primarily invests across four sectors: Health IT and technology-enabled health services; managed care and benefit design; medical devices and diagnostics, only when uniquely differentiated with a clear 510(k)-style regulatory path; and personalized-medicine technology. The firm explicitly avoids consumer health services and devices, pharmaceutical development, oncology products, therapeutics, biotechnology and pre-revenue concepts, and typically targets opportunities with pre-money valuations between $3M and $10M. TEXO takes an active, non-passive approach, drawing on more than 60 years of combined operating experience. Across a portfolio of about 11 companies it counts one unicorn, Lantern, which reached unicorn status in 2023, with other notable holdings including OpenMarkets Health, CareDox, BetterDoctor, Sensentia, Wenzel Spine, Televero Health and Ortho Kinematics. Average round sizes have been roughly $2.3M at seed and $2.0M at Series A. The firm is led by managing partners Philip Sanger, MD and Jerry DeVries, with Randall Crowder as adviser. By focusing on capital-efficient, scalable health-services and IT businesses, TEXO backs the commercial side of healthcare innovation.