New York, NY — Deerfield Management Company has closed its latest venture fund, the Deerfield Healthcare Innovations Fund III, raising more than $600 million to invest in emerging therapeutics, healthcare delivery models, and transformative technologies, including artificial intelligence and machine learning.
The new fund reflects Deerfield’s ongoing mission to accelerate advancements in healthcare by identifying high-potential innovations across life sciences, medical technology, and healthcare services. James Flynn, Managing Partner at Deerfield, said the firm is capitalizing on a pivotal moment in the industry.
“There has never been a better time to invest in new and evolving technologies across the life science, medical technology, and healthcare service landscape,” Flynn said. “Advancing knowledge, data, and software capabilities are transforming what is possible to achieve in improving health outcomes.”
Deerfield leverages a unique in-house innovation ecosystem, supported by partnerships with 29 research institutions and nine industry collaborators. Through specialized entities such as Deerfield Discovery and Development (3DC) and Deerfield Intelligence, the firm deploys interdisciplinary teams of drug developers, medtech innovators, and software engineers to guide promising ventures from early concept through to commercialization. Many projects originate from Deerfield-founded incubators like Deerfield Catalyst and Genscience.
Fund III will operate out of Deerfield’s flagship innovation hub, Cure, a 12-story campus in New York City designed to support health startups with research labs, convening spaces, and tailored business development resources. Cure’s infrastructure plays a central role in nurturing the ideas that Deerfield backs.
Consistent with its philanthropic tradition, Deerfield will donate a portion of the fund’s profits to the Deerfield Foundation, which supports healthcare nonprofits around the world. Since 2005, the foundation has partnered with clinics and health organizations from the South Bronx to rural Nepal, focusing on pediatric and underserved populations.
With more than three decades of experience in healthcare investing, Deerfield currently employs over 180 professionals spanning disciplines such as clinical medicine, biostatistics, drug development, healthcare economics, and market access. This breadth of expertise enables the firm to support portfolio companies and partners at every stage of growth.
Deerfield’s latest fund positions the firm to remain at the forefront of innovation in healthcare, with a focus on scaling technologies and treatments that have the potential to redefine patient care.
