H1, a healthcare data platform that has spent nearly a decade building a comprehensive database of global physician information, has successfully secured $40 million in new funding. The investment round was led by CVS Health Ventures, the corporate venture capital arm of the major healthcare conglomerate. This infusion of capital highlights a continued appetite for specialized data-driven software companies, even as the broader venture capital market shifts its primary focus toward generative AI startups.

Despite the current industry trend of prioritizing AI-native companies, H1 CEO Ariel Katz maintains that businesses built on proprietary, high-value data sets remain resilient against disruption. Katz argues that while AI models can automate basic workflows, they cannot easily replicate the deep, verified intelligence that H1 provides to pharmaceutical companies, hospital systems, and health insurers. In fact, he suggests that major AI developers may eventually become clients rather than competitors, as they seek high-quality data to train their models.

Although H1 was not actively seeking capital—having achieved EBITDA profitability last year with projected growth exceeding 40%—the strategic partnership with CVS Health proved too significant to pass up. The company, which was last valued at $750 million during a 2021 funding round, has spent the last few years focusing on fiscal discipline and strategic acquisitions to navigate the cooling tech investment climate. This latest round serves as a vote of confidence in the company’s long-term strategy of providing essential infrastructure for the healthcare sector.