2025 marked a year of significant shifts across healthcare, driven by changes in policy, capital markets, and the accelerating pace of technology adoption. In this environment, Town Hall doubled down on our core approach: thematic research grounded in policy, deep operational engagement with our companies, and a focus on AI and technology as fundamental drivers of healthcare transformation.

We view AI not as a point solution, but as an infrastructure layer—capable of reshaping how care is delivered, medications are accessed, patients are engaged, and payments are managed, all at meaningfully lower cost. Over the past year, adoption of AI across our portfolio expanded rapidly, with companies embedding these capabilities directly into their operating models to improve outcomes and unit economics at scale.

This perspective has shaped how we invest. In October, we were proud to announce the launch of Town Hall Ventures Fund IV, and we are deeply grateful to our limited partners for the trust you have placed in us to deploy this capital. As we put Fund IV to work, we are prioritizing companies where AI is a primary enabler—embedded in the core operating model and tied directly to better outcomes and unit economics.

As a firm, 2025 marked a year of meaningful progress. We made six new investments (two of which are expected to be announced early in the new year), the final three from Fund III and first three out of Fund IV, saw nine portfolio companies complete financings, welcomed six new team members, and saw another liquidity event out of Fund I. We saw billions of dollars of ecosystem commerce, with Limited Partners continuing to show enthusiasm for and investment in partnerships with Town Hall portfolio companies.

Across the portfolio, we saw Strive Health and Thyme Care each complete significant fundraises while continuing to scale technology-enabled specialty care in kidney and oncology, respectively. Hopscotch Health advanced critical work influencing how states deploy Rural Transformation Fund dollars, helping shape the future of rural care delivery, and Habitat Health emerged as the fastest-growing PACE plan in the country. We were proud to see Qualified Health recognized on the CB Insights Top #DigitalHealth50 list at HLTH for its AI platform enabling health systems to safely scale AI with governance and clinical safeguards, and Ambience recognized by KLAS as the #1 tool improving clinician experience in the emerging solutions category - garnering a 97.7% customer satisfaction score. We continued to deepen our pharmacy thesis through new investments in HouseRx and Arine, where AI is reshaping medication access and management.

Policy remains a central pillar of our strategy. Since the Annual Meeting this fall, CMS has advanced several important innovation models, including ACCESS, LEAD, and BALANCE, reinforcing a shift toward outcomes-based payment and prioritization of chronic illness prevention and control. Our proximity to these developments allows us to stay ahead of where incentives are moving—and to invest + guide portfolio companies accordingly.

This year also marked the launch of the Town Hall Impact Advisory Council, composed exclusively of LPs who volunteered their time to help guide how we measure, govern, and report the impact our companies are having in the years ahead. We are grateful for their leadership and partnership.

Below, you’ll find more detail on the year—and the year in pictures. Thank you for being part of this work.

Wishing you and your families a Happy New Year!

— The Town Hall Ventures Team