Artificial intelligence now attracts almost half of global venture investment, but investors are becoming increasingly selective about the type of AI companies they back, according to Tenmile managing director Dr Steve Burnell.
Speaking following the announcement of a strategic partnership between Australian-based venture capital firm Tenmile and industry body AusBiotech, Dr Burnell said healthcare startups could no longer rely on simply branding themselves as AI companies to attract funding.
“It’s no longer enough to simply say, ‘We have AI,” he said.
“Investors are looking for deep healthcare domain expertise, proprietary data, a clear business model and AI that ties all those pieces together.”
Dr Burnell said the shift reflected a maturing market in which access to unique data and a clear pathway to adoption had become more important than the underlying AI technology itself.
“Now everyone, including investors, is much more savvy and they’re looking for AI enabled with depth in healthcare, a data moat of some kind, a clear reimbursement path and business model,” he said.
STRENGTHENING LINKS
Dr Burnell said Tenmile’s partnership with AusBiotech aims to strengthen links between investors, founders, clinicians and institutions, while helping Australian companies access both domestic and international capital.
Australia produces world-class science, but too many promising companies struggled to secure the capital, expertise and market pathways needed to scale.
“Our collaboration with AusBiotech is built around creating more of those connections,” Dr Burnell said.
“We want to make sure Australia achieves the patient impact and commercial success it deserves as a serious innovation engine on the global life sciences stage.”
Dr Burnell said one of the key roles of AusBiotech was providing a unified voice for an industry that spans healthcare, research, innovation and education sectors.
“If you don’t have a single voice representing the industry, you can get dilution of message,” he said.
He said Tenmile had worked with AusBiotech for several years to bring an investor perspective into the organisation’s activities, including through the Early Stage Innovation Forum, which gives founders an opportunity to present their business ideas and receive feedback from investors.
The new partnership would extend that work and create additional opportunities for Australian startups and scale-ups.
LIFE SCIENCES
A major focus for Tenmile is attracting international investment into Australian health and life sciences companies, Dr Burnell said.
“We develop strong intellectual property, spin out great technology, start up great small companies and now we need to focus on crowding in capital,” he said.
He said creating larger, coordinated events with international profiles was an important part of that strategy, allowing overseas investors to gain a better understanding of Australia’s clinical trial system, research strengths and emerging companies.
As part of the partnership, Tenmile’s Focal Point and Healthtech Muster events will become part of Australia’s Biggest Week in Biotech, to be held on the Gold Coast from October 19-23.
AusBiotech chief executive Rebekah Cassidy said the organisation’s role was to bring together all parts of Australia’s life sciences ecosystem, from researchers and startups through to manufacturers, investors and service providers.
“We are delighted to cement our strategic partnership with Tenmile as we work together to support the growth of life sciences in Australia,” Ms Cassidy said.
The two organisations said further joint initiatives would be announced during 2026, with a particular focus on unlocking more capital, especially in some of Tenmile’s priority areas including women’s health, antimicrobial resistance, cancer, and artificial intelligence.
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