Tuesday, 22 September 2026 09:00 AM
Company Update
The Boston firm has raised more than $1.3 billion across five core funds and three opportunity funds and backed six unicorns over two decades.
BOSTON, MA / ACCESS Newswire / September 22, 2026 / .406 Ventures, an early-stage venture capital firm investing in healthcare, data + AI, and cybersecurity, today commemorated its 20th anniversary with the announcement of its 100th portfolio investment, women's healthcare company Teal Health, and the promotion of Kathryn Taylor Reddy from Principal to Partner. The achievement reflects the contributions of the founders, limited partners, and extended .406 community that have helped the firm build and support consequential companies over the past two decades.
"This milestone belongs to the entire .406 network," said Liam Donohue, co-founder and Managing Partner of .406 Ventures. "The founders we have backed trusted us to partner with them as they took on the most difficult, important problems in their industries, and our limited partners invested their capital with us to back those founders with patience and conviction. We are incredibly proud of the impact our investments have made and energized by how much opportunity still lies ahead."
Donohue, along with Maria Cirino and Larry Begley, founded .406 Ventures to fill a gap in Boston's early-stage funding market. The northeast has always been a center for technology, healthcare, research, and talent, but in the mid 2000's there were few local early-stage investors focused on helping young companies grow. With direct experience founding and running companies themselves, .406's founders set out to build a firm made up of investors they would have wanted by their side.
Over the past 20 years, the firm has raised over $1.3 billion across five core funds and three opportunity funds, and made 100 investments, six of which have already reached unicorn status. More than 30 percent of its investments have involved repeat .406 founders or executives. Notable exits include AbleTo (sold to Optum), Bend (sold to Webster Bank), Carbon Black (IPO/sold to VMWare), CloudHealth (sold to VMWare), Compass (IPO), Corvus Insurance (sold to The Travelers Companies), Health Dialog (sold to BUPA), Iora Health (sold to One Medical/Amazon), Reltio (sold to SAP), and Veracode (sold to CA Technologies). The firm's active portfolio currently includes category leaders such as Redox, InStride Health, Wayspring, and WelbeHealth, among others.
".406 Ventures co-led Reltio's Series A in 2015, at a time when few investors understood how crucial unifying enterprise data would become," said Manish Sood, founder and CEO of Reltio. "The .406 team engaged as a strategic partner from the start, and more recently brought deep AI expertise that encouraged us to evolve Reltio into the critical AI infrastructure that SAP acquired. This kind of patient partnership is rare in venture, and it's an important part of the Reltio story."
Full Circle: Teal Becomes 100th Investment
The firm added its 100th portfolio company with an investment in Teal Health, a women's healthcare company working to make cervical cancer screening more accessible through an at-home option. In a cosmic coincidence, Teal Health founder and CEO Kara Egan began her career as a founding associate at .406 Ventures, where, among other things, she named the firm. Her return as the founder of the firm's 100th portfolio company is emblematic of .406's belief that enduring relationships built through shared effort is the foundation of long-term success.
"While I've always felt part of the .406 family, returning as the founder of its 100th portfolio company is especially meaningful," said Egan. "I've seen firsthand the conviction and commitment they bring to the founders they back. Their investment in Teal reflects a shared belief that women deserve better healthcare options and that we are uniquely positioned to deliver them at scale. Together, we have an extraordinary opportunity to transform women's health and build a new standard of care."
Kathryn Taylor Reddy Promoted to Partner
.406 Ventures also announced the promotion of Kathryn Taylor Reddy from Principal to Partner. Reddy joined the firm in 2021 with extensive healthcare operating, consulting, and investing experience. At .406, she focuses on early-stage companies developing systems, technologies, and tech-enabled services that improve care delivery.
Her portfolio work includes Bluebird Kids Health, Cortica, Diana Health, FamilyWell Health, Helm, InStride Health, Lynx, On Belay Health, OncoveryCare, and Teal. Before joining .406 Ventures, Reddy invested in healthcare companies at BPEA and in early-stage healthcare technology and life sciences companies at Excel Venture Management.
"I crossed paths with the .406 team years before I ever joined, and they were always the firm I admired most," said Kathryn Taylor Reddy, Partner at .406 Ventures. "Six years later, this is still the only team I ever want to be on, and I couldn't be prouder to back founders tackling healthcare's hardest problems as a Partner."
.406 Ventures will commemorate its 20th anniversary with a private celebration at Boston's Institute of Contemporary Art.
ABOUT .406 VENTURES:
.406 Ventures is a Boston-based venture capital firm with over $1.3B under management and two decades of experience leading or co-leading early-stage investments in pioneering healthcare, data + AI, and cybersecurity companies founded by visionary entrepreneurs. For more information, visit http://www.406ventures.com.
MEDIA CONTACT: Nina Pfister, MAG PR at [email protected]
SOURCE: .406 Ventures