Australia’s flagship digital health accelerator program ANDHealth+ has secured $33 million in fresh funding from the federal government to expand its support for high-growth digital and connected health startups, in a move aimed at cementing the country’s position as a global innovation hub.
The new grant, part of the $100 million allocated under the Medical Research Future Fund’s (MRFF) latest commercialisation round, will allow ANDHealth to back 10 to 15 companies through a two-year program with milestone-based, non-dilutive funding of up to $5 million each, alongside project support and access to global markets.
“This MRFF grant recognises the success of the ANDHealth+ program to date and represents a significant milestone in expanding the support available for the most promising digital and connected health innovators in Australia,” ANDHealth chief executive Bronwyn Le Grice said.
“By increasing the non-dilutive funding available under ANDHealth+, we’re aligning with the growing scale and maturity of the sector and providing a more robust launchpad for companies to secure meaningful private investment, create more jobs and impact more patients.”
Since its launch in 2017, ANDHealth+ has supported 28 companies, which have collectively raised $187 million in follow-on funding, created 507 jobs and generated $77 million in revenue. The program has directly impacted 2.9 million patients.
Federal Health minister Mark Butler said the funding underpins a broader commitment to supporting the commercialisation of medical innovation onshore from “world-class medical researchers”.
“These investments will help bring new technologies and treatments to patients, build sovereign capability, create new jobs, and grow our economy,” Mr Butler said.
“This funding is about helping researchers and companies develop their innovations to the point where they can be taken to market. It means Australians will be among the first to benefit from cutting-edge research breakthroughs.”
An independent economic assessment by LEK Consulting in 2024 found that ANDHealth+ companies raised between 2.5 and 13 times more follow-on capital and generated up to 2.9 times more revenue than companies participating in other leading accelerator programs in health and tech.
Global venture capitalist Lisa Suennen, who chairs ANDHealth’s International Investment Committee, said the program’s international reputation was garnered from bringing “experts together from all around the world that help these companies in a really deliberate and thoughtful manner.”
“Through the program I’ve seen companies achieve additional capital, gain market entry and reach levels of maturity that they probably weren’t going to get to,” Ms Suennen said.
Applications for the next ANDHealth+ cohort will open in the coming months.
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