Jon Stojan
Image credit: Simcha Hyman
Family offices are emerging as major players in health care AI investment, bringing patient capital and industry expertise to a sector that stands to benefit from long-term commitment and careful technology rollouts. Simcha Hyman, CEO of New York’s TriEdge Investments, is part of this group of investors, bringing a background in operating health care organizations and a focus on solving systematic administrative problems with AI.
“The immediate technical challenge involves creating systems that can translate complex medical information while maintaining privacy safeguards,” he told Tech Times in a recent interview. “The longer-term challenge involves integrating these systems into existing workflows without disrupting care delivery.”
The Family Office Advantage
Family offices possess unique attributes that could position them well for health care AI investment. According to Citi Private Bank’s 2024 Global Family Office Survey, 53% of family offices maintain AI health care investments, with another 26% actively exploring the space.
“We’re investors and builders,” said Hyman of TriEdge’s approach to AI. “Our operational experience running health care businesses gives us firsthand insight into the real problems that need solving. Most AI startups building in this space haven’t experienced the problems they’re trying to solve.”
He explained that the advantages a family office like TriEdge could bring to health care AI investment include:
- Patient capital: The ability to invest with longer time horizons than traditional VC.
- Operational expertise: Firsthand knowledge of health care systems and challenges.
- Mission alignment: Motivated by both financial returns and positive impact.
- Flexibility: Can invest across stages and deal structures.
- Lower pressure: Not driven by fund cycles or limited partner expectations.
This is particularly valuable in health care, where implementation timelines routinely stretch beyond traditional venture capital horizons.
As Hyman noted, “a lot of health care’s structural problems stem from misaligned incentives and fragmented information systems. These aren’t just technical problems — they’re system design problems that require long-term thinking beyond quarterly earnings calls.”
Investment Trends in Health Care AI for 2025
The health care AI investment environment has picked up momentum in 2024. Recent data reported by Fierce Healthcare indicates that health care AI startup funding reached unprecedented levels, with AI-focused companies receiving $11.1 billion in venture capital across 2024, the highest since 2021. This number was up from $7.2 billion VC dollars invested in AI health care companies in 2023, representing 21% of total VC health care investment.
Since 2021, startups in the administrative AI space — focusing on using AI for virtual assistants, clinical note-taking, and revenue cycle operations — make up 60% of total AI investment in health care.
The most active health care AI investment areas in 2025 include:
- Administrative AI: Tools for documentation, billing, and workflow optimization.
- Clinical decision support: Systems that assist diagnostic and treatment processes.
- Patient engagement: Platforms that enhance patient-provider communication.
- Data integration: Solutions that connect disparate health care information systems.
- Predictive analytics: Tools that forecast patient needs and operational requirements.
TriEdge has followed this trend, focusing on investing in AI to solve issues with documentation, interoperability of electronic health records, and patient-provider communication.
“We’re developing technology that makes health information accessible to both families and providers,” said Hyman. “With LLMs, we can now let a doctor enter a chart note and give family members the ability to interpret it based on their level of clinical understanding.”
Building an AI Health Care Portfolio
For Simcha Hyman, successful health care AI investment requires understanding the data foundation.
“We’re working towards moving everyone over to a data lakehouse where it’s easy to then communicate with the data or layer on any type of large language model,” he says, adding that this will create a “uniform process across our portfolio companies,” that will facilitate communication.
Family offices are particularly well positioned to support this sort of data infrastructure development. Unlike traditional venture capital firms that optimize for 7-10 year exits, family offices can prioritize sustainable value creation aligned with health care’s natural innovation cycles.
Simcha Hyman emphasizes the importance of a patient-centric plan: “What we prefer to do is go to organizations and collaborate with them,” he says.
Recent Family Offices Activity
The trend of family offices investing in health care AI is part of a broader movement of high-net-worth individuals directing capital toward innovative health care technologies. In January 2025 alone, single-family offices made at least 24 investments in startups or acquisitions, according to data from Fintrx.
Notable examples from early 2025 include:
- Azim Premji’s family office participated in a $141 million round for Hippocratic AI, which is building an AI agent for health care providers.
- Laurene Powell Jobs’ Emerson Collective contributed to a $100 million fundraise for immunotherapy startup Umoja Biopharma.
- Li Ka-shing’s Horizons Ventures invested in Owlstone Medical’s $27 million round for breath-based disease diagnostics.
While TriEdge is part of this trend, Hyman sees the firm’s method as slightly different. “We’re not the traditional family office in the sense that we take a more hands-on approach,” he says.
For TriEdge, this hands-on strategy includes direct operational involvement. Unlike many billionaire investors who simply provide capital, Hyman brings decades of health care experience operating facilities.
Why Invest in Health Care AI?
When evaluating potential health care AI investments, Simcha Hyman applies specific criteria that reflect both business fundamentals and deeper values.
Beyond typical venture metrics, Hyman also evaluates the human element. “Am I able to sit in the room with whoever the founder is for a long period of time and engage in a meaningful conversation, and engage in my own curiosity, but keep a dialogue going?” he asks.
This aligns with growing evidence that family offices consider both financial and nonfinancial factors in their investment decisions. About one-fifth of family offices in the U.S. and Europe have recently invested in health care or biotech, combining considerations of returns with valuing the impact of such investments to meaningfully improve a challenged health care system.
Hyman says his firm’s “big focus” will continue to be finding and developing the right AI applications to address health care’s most pressing challenges in a responsible way. With a steady stream of patient capital from family offices along with broader investment enthusiasm, the future of health care AI looks promising.