As we approach MedCity News INVEST 2025, set to take place on May 20 and 21 at Chicago’s iconic Willis Tower, excitement is mounting among healthcare startups, investors, and industry stakeholders. This boutique healthcare investment conference serves as a vital platform for innovators and financiers to come together, fostering collaboration that could define the future of healthcare.

At the center of this conference’s activities is the eagerly anticipated Pitch Perfect contest, where healthcare entrepreneurs showcase their groundbreaking solutions to unmet needs in the sector. A distinguished panel of investor judges evaluates these pitches, with Charity Tarn from Arboretum Ventures leading the charge in the devices and diagnostics track focused on chronic disease management. Joining her on the judging panel are notable figures in the field, including Jenni Le, principal at Venture Investors Health Fund, and Ashish Atreja, a professor at UC Davis Health.

In a recent discussion, Tarn shared her insights regarding the current investment landscape, particularly the challenges faced by healthcare startups today. With her extensive experience as a healthcare investor, she is well-positioned to speak on what lies ahead for both investors and entrepreneurs.

One of the core topics was the shifting focus of her firm’s investments for 2025. Arboretum Ventures has identified four main pillars in their investment thesis: medtech, healthtech, life science tools and diagnostics, and pharma-adjacent technologies. While maintaining a robust emphasis on medical devices, Tarn expressed excitement about exploring opportunities within tech-enabled services and healthcare IT. These sectors, historically fruitful, are evolving rapidly, and she anticipates considerable potential for growth in the coming years.

Tarn also noted a significant shift in startup fundraising strategies over the past few years. With the current environment presenting considerable challenges and elevated financing risks, startups have become more capital-efficient. Entrepreneurs are now exercising greater scrutiny as they define value-driving milestones, creating a more strategic approach to securing future funding.

Moreover, Tarn highlighted a evolving priority shift among healthcare and biopharma strategic investors. Uncertainties in the broader economic landscape are prompting a preference for de-risked investments that manifest more predictable business models and deliver immediate returns. This change in focus acknowledges the importance of resilience and adaptability in an increasingly competitive market.

Among her portfolio companies, Tarn took particular pride in SonarMD, noting the team’s achievements in navigating difficult commercial challenges and charting a course for growth. As the company empowers gastrointestinal (GI) patients to manage their symptoms effectively, it exemplifies the value-based care principles that drive innovation in healthcare.

For industry professionals and enthusiasts alike, MedCity News INVEST 2025 is not just an event but a notable gathering of minds poised to redefine healthcare. To explore the agenda and witness pioneering startups pitch their transformative ideas, be sure to register and join what promises to be an unforgettable experience.