Australia’s private health insurers are transforming from passive portfolio players into active venture capitalists. Perth-based HBF led the charge on February 9, 2026, unveiling HBF Ventures—a A$25 million dedicated fund targeting health tech startups that could redefine care delivery for its 1 million+ members.
This isn’t a one-off. With total Aussie VC rebounding to A$5.1 billion across 390 deals in 2025, health insurers are carving out strategic slices, blending returns with pilots that give them an edge in a A$30 billion private health market growing at 5–7% annually. Expect more insurer-led deals as tech spend surges 15–20% year-on-year.
HBF Ventures: Structure and Management
HBF carved the A$25 million (about US$17.6 million) from its broader investment portfolio, launching a 10-year fund aiming for 15–20 bets in seed through growth-stage health tech.
Crucially, Artesian—a top-tier early-stage VC with A$2 billion+ under management—will manage the fund via its “Venture Capital as a Service” (VCaaS) model. This outsources deal sourcing, due diligence, portfolio support, and governance while letting HBF retain strategic input on pilots and member-aligned themes.
HBF’s CIO Sanjeev Gupta oversees operations, hunting “secure, scalable solutions” for claims processing, personalization, and outcomes. CEO Dr. Lachlan Henderson frames it as backing “accessible, effective, sustainable healthcare” amid rising chronic disease loads and telehealth adoption. First closes suggest deal flow starts imminently, with check sizes likely A$1–2 million to match sector medians.
The Broader Insurer-VC Wave
HBF joins an accelerating trend:
- Bupa Ventures (2024): A$20 million fund targeting predictive/preventative care. Deployed into Umps Health (wearable sensors), Eugene Labs (genomics), and Vively (continuous glucose monitoring)—up to A$2 million per seed/Series A.
- HCF’s XT Ventures: Ongoing health innovation arm, backing telehealth and data plays without disclosed fund size.
- RAC’s BetterLabs (WA): A$23 million multi-sector fund including health tech, leveraging the insurer’s member base for validation.
Collectively, these represent A$70 million+ in CVC firepower since 2024—small vs. traditional VC but potent for targeted sectors where insurers hold distribution moats.
High-Impact Targets
HBF’s playbook mirrors peers but leverages WA’s unique needs:
- Digital health + AI/ML: Patient navigation apps, predictive claims/risk models, fraud detection—areas where HBF’s data gives startups fast validation.
- New care models: Telehealth hybrids, virtual chronic care, in-home diagnostics to cut hospital reliance.
- Preventative/population health: Wellness platforms, genomics screening, workforce programs—think mining FIFO health for WA angle.
Founder perks extend beyond capital: Real-world pilots with HBF members (claims data, user feedback), co-marketing, and scale ramps. Artesian’s VCaaS adds 200+ deal flow access and operator networks. No first deals yet, but Perth/Sydney bias likely, with mining-adjacent plays (remote monitoring, fatigue tech) as WA sweeteners.
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Macro Tailwinds Driving the Shift
Private health penetration sits at 45% of Aussies, but rising premiums (up 3–5% in 2026 cycles) and tech mandates from the Federal Government (My Health Record expansions) push insurers toward innovation. Health tech deal count rose 25% last year, with medians at A$2–5 million—perfect for CVC scale.
Artesian’s involvement signals professionalization: VCaaS lets non-VCs like HBF launch funds without building internal teams, mirroring global trends (e.g., Merck’s GV, Pfizer Ventures). Aussie health tech raised A$450 million in 2025, or ~9% of total VC, underscoring the pool.
Ecosystem Implications
ASX capital markets see rising IPO appetite for health tech, per 2026 outlooks—especially post-rebound listings in SaaS and med devices.
Proxies to watch: Life360 (family tracking/wellness), Telix Pharmaceuticals (imaging/radiopharma), or Pro Medicus (AI radiology)—all riding similar digitization waves. CVC ramps foreshadow M&A; Bupa’s portfolio already shows acquisition paths.
For fund managers: Seed health syndicates will thicken (watch A$2–5m rounds), but corporates demand pilots and metrics over pure growth stories. Multiples may compress to 8–12x (from 2021 peaks), yet volume’s up 20% YoY—prime for mid-cap quality funds. WA LPs get home-state alpha via HBF/RAC.