.406 Ventures, a Boston-based early-stage venture capital firm, is celebrating its 20th anniversary with its 100th portfolio investment in Teal Health and the promotion of Kathryn Taylor Reddy from Principal to Partner. The firm has raised more than $1.3 billion across five core funds and three opportunity funds over the past two decades, investing in healthcare, data and artificial intelligence, and cybersecurity companies. Its portfolio includes six companies that have achieved unicorn status, while more than 30% of its investments have involved repeat founders or executives previously backed by the firm.
Founded by Liam Donohue, Maria Cirino, and Larry Begley, .406 Ventures was established to address a gap in Boston’s early-stage investment market. Although the Northeast had an established concentration of technology companies, healthcare institutions, research organizations, and entrepreneurial talent, relatively few local investors were focused on helping emerging companies grow during the mid-2000s.
The firm’s founders brought direct experience building and operating companies and sought to establish an investment platform that could provide entrepreneurs with capital, operational expertise, and long-term strategic support.
Over the past 20 years, .406 Ventures has built a portfolio spanning several major technology and healthcare sectors. Its notable exits include AbleTo, acquired by Optum; Carbon Black and CloudHealth, acquired by VMware; Corvus Insurance, acquired by Travelers; Iora Health, acquired by One Medical and subsequently Amazon; Reltio, acquired by SAP; and Veracode, acquired by CA Technologies.
Other notable investments include Bend, Compass, and Health Dialog. The firm’s active portfolio includes Redox, InStride Health, Wayspring, and WelbeHealth.
The firm’s 100th investment is Teal Health, a women’s healthcare company developing an at-home cervical cancer screening option intended to make preventive care more accessible.
The investment also represents a significant personal milestone for Teal Health founder and CEO Kara Egan. Egan began her career as a founding associate at .406 Ventures, where she helped establish the firm and was responsible for naming it. Her return as the founder of the firm’s 100th portfolio company reflects .406 Ventures’ emphasis on maintaining long-term relationships with entrepreneurs.
Alongside the investment milestone, .406 Ventures announced the promotion of Kathryn Taylor Reddy to Partner. Reddy joined the firm in 2021, bringing experience in healthcare operations, consulting, and venture investing.
At .406 Ventures, Reddy focuses on early-stage healthcare companies developing technology, services, and infrastructure designed to improve healthcare delivery. Her portfolio work includes Bluebird Kids Health, Cortica, Diana Health, FamilyWell Health, Helm, InStride Health, Lynx, On Belay Health, OncoveryCare, and Teal Health.
Before joining .406 Ventures, Reddy invested in healthcare companies at BPEA and early-stage healthcare technology and life sciences businesses at Excel Venture Management.
Her promotion expands the firm’s investment leadership as it continues supporting entrepreneurs developing technologies and services across healthcare.
The anniversary also highlights .406 Ventures’ investment in enterprise data infrastructure. The firm co-led Reltio’s Series A financing in 2015, recognizing the potential importance of unified enterprise data. Reltio subsequently expanded its capabilities into AI-related infrastructure before its acquisition by SAP.
To commemorate its anniversary, .406 Ventures will host a private celebration at Boston’s Institute of Contemporary Art, bringing together members of its investment community and entrepreneurial network.
KEY QUOTES:
“This milestone belongs to the entire .406 network. 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.”
Liam Donohue, Co-Founder and Managing Partner of .406 Ventures
“.406 Ventures co-led Reltio’s Series A in 2015, at a time when few investors understood how crucial unifying enterprise data would become. 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.”
Manish Sood, Founder and CEO of Reltio
“While I’ve always felt part of the .406 family, returning as the founder of its 100th portfolio company is especially meaningful. 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.”
Kara Egan, Founder and CEO of Teal Health
“I crossed paths with the .406 team years before I ever joined, and they were always the firm I admired most. 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.”
Kathryn Taylor Reddy, Partner at .406 Ventures
