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Digital health funding in Q1 2017

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CREDIT: This post was originally published on this site

The first quarter of 2017 has been an impressive one for digital health funding. MobiHealthNews tracked a staggering 46 deals in January, February, and March, totaling $1.47 billion ($1.35 billion in equity and $12 million in debt). Even dropping the outlier that is Verily’s $800 million round, that still adds up to more than $600 million in investment, not to mention eight more funding rounds with undisclosed amounts.

It’s worth noting we also reported on one piece of news on the investor side, with Venture capital firm Digitalis launching a $100 million digital health fund in January. The fund’s mission is to spur innovation in healthcare by investing in early and seed stage companies that leverage math, science and technology to address human health problems.

Also, for an investor perspective, check out two contributed pieces published this quarter from Flare Capital Principal Dan Gebremedhin and Asset Management Ventures Partner Skip Fleshman. Exclusive to MobiHealthNews, these two high-profile digital health investors shared their predictions for how the space will shake out in the coming year.

We’ve listed the 54 funding rounds of Q1 below, in descending order of funding, with links to our coverage at the time. The undisclosed rounds are listed in chronological at the end of the list. All investments have been converted to USD based on the exchange rate at the original article’s press time.

Verily — $800 million. Verily, the Alphabet subsidiary formerly known as Google Life Sciences, raised $800 million in funding from Temasek, a Singapore-based investment company. Temasek will take a minority stake in the company and nominate a member to the company’s board.

PatientsLikeMe — $100 million. Online network PatientsLikeMe, which serves as an information, support and study recruitment source for people living with chronic conditions, secured $100 million in new funding, largely from a new partnership with health data and genomics company iCarbonX. Existing investor Invus also contributed to the funding round.

PointClickCare — $85 million. Ontario-based PointClickCare, which makes a cloud-based EHR platform and other software solutions to advance senior care raised $85 million in new funding. Dragoneer Investment Group led the round with participation from existing investor JMI Equity.

Practo — $55 million. Bangalore, India-based startup Practo, which offers an app and web-based platform for people to access healthcare information and locate doctors, raised $55 million in Series D funding in a round led by returning investor Tencent. Thrive Capital, Ru-Net, RSI Fund, Sequoia, Matrix, Capital G, Altimeter Capital and Sofina also contributed. This brings Practo’s total funding to date at about $180 million.

Livongo — $52.5 million. Technology-enabled diabetes management company Livongo Health raised $52.5 million in new funding in a round co-led by General Catalyst, an existing investor, and international investment company Kinnevik. Other investors included Microsoft Ventures, American Investment Holdings, and EDBI, a Singapore-based fund whose portfolio includes WellTok, GoBalto, and Sotera Wireless. All previous investors also participated in the round.

Virta Health — $37 million. San Francisco-based startup Virta Health officially launched this quarter, backed by $37 million from investors including Venrock, Allen & Company, Redmile Group, Evan Williams’ Obvious Ventures and PayPal founder Max Levchin’s Scifi VC. Virta is approaching type 2 diabetes with a goal to use personalized nutrition, one-on-one coaching and remote monitoring to reverse the disease rather than medication or surgery.

AliveCor — $30 million. Smartphone ECG company AliveCor announced $30 million in new funding, led by the Mayo Clinic and Omron Healthcare. The investments don’t come attached to any new partnerships, but they’re strategic in a sense, since AliveCor has worked with both Omron and Mayo Clinic in the past on distribution and research projects, respectively.

DoctoLib — $28 million. Paris, France-based Doctolib, an online doctor’s appointment booking app and management software company, raised $28 million (26 million euros) in series C funding in a round led by BPI France. Existing investors Accel, Pierre Kosciusko-Morizet, cofounder of PriceMinister, and BlaBlaCar cofounder Nicolas Brusson also contributed.

CXA Group — $25 million. Singapore-based health technology startup CXA Group, which offers an employee benefits and wellness marketplace platform, raised $25 million in Series B funding in a round led by B Capital Group and EDBI. Additional funding came from Philips and RGAx, a subsidiary of Reinsurance Group of America.

Aledade — $20 million. Bethesda, Maryland-based Aledade, which partners with primary care physicians to create tech-enabled accountable care organizations, has raised $20 million in a round led by Biomatics Capital, GV and Maryland Venture Fund. Existing investors Venrock and ARCH Venture Partners also contributed to the round. This brings the company’s total funding to $54.5 million.

Connecture — $17.5 million. Brookfield, Wisconsin-based Connecture, an online health insurance marketplace platform, raised $17.5 million in new financing, according to an SEC filing, with San Francisco-based Francisco Partners leading the round. This brings the company’s total funding to nearly $132 million.

Kinsa — $17 million. Smart thermometer maker Kinsa raised $17 million in a round led by GSR Ventures, Kleiner Perkins Caufield Byers, and FirstMark Capital. This brings the company’s total funding to $28.6 million. Kinsa, which received FDA clearance for its smartphone-connected thermometer in 2014, said it will use the latest funding to develop additional smart products and services to the Kinsa line.

Intuity Medical — $15 million. Diabetes management device maker Intuity Medical raised another $15 million in Series C funding in a round led by PTV Healthcare Capital, new investors KCK Group, and affiliates of Luther King Capital Management. Existing investors Accuitive Medical Ventures, Investor Growth Capital, US Venture Partners, Venrock and Versant Ventures also contributed to the round.

Medisafe — $14.5 million. Medication adherence startup MediSafe raised $14.5 million in a round led by Octopus Ventures and M Ventures (the venture arm of Merck Pharmaceuticals), with participation from existing investors Pitango Venture Capital, 7wire ventures, lool Ventures, TriVentures and Qualcomm Ventures. The company also announced that it will begin expanding into Europe using some of the funds.

PeraHealth — $14 million. PeraHealth, a Charlotte, North Carolina-based healthcare data analytics company, raised $14 million in first-round funding from Mainsail Partners, a growth equity firm. As a growth equity investor, Mainsail Partners will give the company a lot of hands-on attention, Alexander said, and PeraHealth will benefit from a “strong operations team and strong healthcare and technology expertise”.

Endotronix — $12 million (debt). Chicago-based Endotronix added another $12 million in funding to further development on its wireless, remote cardiac monitor system. The money comes in the form a loan agreement with Silicon Valley Bank, and builds on the company’s previous funding of $32 million in July.

Cognoa — $11.6 million. Palo Alto, California-based Cognoa, which makes an app to assess child development, raised $11.6 million in a round led by existing investor Morningside. This brings the company’s total funding to over $20 million. The latest funding will be used to for additional validation studies on the path towards FDA submission as well as to expand the app’s use with pediatricians, employers and insurers.

Aetion — $11.2 million. New York-based healthcare technology company, Aetion, which makes an analytics platform to assess real-world evidence from a range of sources, raised $11.2 million in Series A funding. Flare Capital Partners, a VC firm focused on early stage health technology and services, led the round, and Lakestar also contributed.

HealthReveal — $10.8 million. New York City-based HealthReveal, which uses remote monitoring and data analytics to help payers and providers make sure patients get the treatments that line up with evidentiary guidelines, raised $10.8 million in first-round funding. The round was led by GE Ventures with contributions from Greycroft Partners, Flare Capital Partners, and Manatt Ventures.

Redox — $9 million. Madison, Wisconsin-based Redox, which makes APIs to create interoperability between healthcare organizations and developers, raised $9 million in Series B funding in a round led by RRE Ventures. Existing investors .406 Ventures, HealthX Ventures and Flybridge Capital Partners also contributed to the round. This latest financing brings their total funding to around $13 million.

KenSci — $8.5 million. Seattle-based predictive analytics and machine learning company KenSci raised $8.5 million in its first round of funding. It plans to use the capital to further develop its data and machine learning platform and expand its operations.

SilverCloud — $8.1 million. Digital behavioral health company SilverCloud, which makes an online platform of mental health and wellbeing programs for health systems and healthcare organizations, raised $8.1 million in a round led by B Capital Group, the venture capital firm founded by Facebook co-founder Eduardo Saverin. ACT Ventures, Investec Ventures and AIB Seed Capital fund also contributed.

Sensely — $8 million. San Francisco-based Sense.ly, which makes a virtual nurse assistant available through an app, raised $8 million in Series B funding in a round led by Chengwei Capital. Additional contributions came from Fenox Venture Capital, Bioved Ventures, the Mayo Clinic and the Stanford StarX fund. This brings the company’s total funding to date to at least $11.5 million.

Carbon Health — $6.5 million. Carbon Health, a San Francisco tech-enabled clinic with aspirations to become a virtual health system, has secured its first round of venture funding with $6.5 million, led by BuildersVC. Javelin Venture Partners, Two Sigma Ventures, and Bullpen Capital also contributed to the round, which will be used to continue developing their digital platform and start rolling out its use through partnership with a couple of (still unnamed at this point) Northern California provider networks.

CareDox — $6.4 million. New York-based CareDox, which offers a digital platform for schools to manage, store and transfer children’s health records, raised $6.4 million in Series A in a round led by Digitalis Ventures. First Round Capital, Giza Venture Capital, TEXO Ventures and Prolog Ventures also contributed. The new funding will be used to further expand CareDox’s platform with more healthcare providers.

Clearwater Clinical — $6 million. Clearwater Clinical, a mobile medical device company based in Ottawa, Ontario in Canada, has raised $6 million in new funding. Whitecap Venture Partners, a Toronto-based early stage venture capital fund, led the round, with additional contributions by BDC Capital Healthcare Venture Fund. This round brings the company’s total funding to $9.5 million.
 
Optolexia — $5.6 million. Swedish startup Optolexia, which makes a digital test to screen for dyslexia in children, raised $5.6 million (5.2 million euros) in a round led by Gabriel Urwitz, CEO of private equity group Segulah. The Pomona Group also contributed to the round, and the funding will be used to launch Optolexia’s service in the United States.

Remedly, Pacifica, TalkLife, Skin Vision, and Combinostics — $5.5 million. Copenhagen, Denmark-based Leo Innovation Lab invested a combined $5.5 million in five startups around the world: medical practice software company Remedly, digital mental health company Pacifica, digital mental health support company TalkLife, skin cancer risk assessment app company Skin Vision, and data-driven diagnostics company Combinostics. Pacifica Labs also announced an undisclosed funding round that included additional investors HealthX Ventures and Personal Health Solutions Capital.

Personal MedSystems (CardioSecur) — $5.4 million. Personal MedSystems, a German medical device company better known by its brand name CardioSecur, raised $5.36 million (5 million euros) in January. KPN Ventures led the round, with additional contributions from new investors Sino-German High-Tech Fund and the NRW-Bank, and existing investors Seventure Partners and HTGF.

LifeDojo — $5.1 million. LifeDojo, a San Francisco-based health behavior change platform for employees, has raised $5.1 million in new funding. The round was led by Sodexo Ventures, the venture arm of French quality of life services company Sodexo, which also announced a major partnership with LifeDojo. Other participants in the round include Launchpad Digital Health, GP Ventures, JD Investments, and the Telluride Venture Fund.

Doctor.com — $5 million. Doctor.com, a New York-based company that makes tools to help doctors manage their online presence and book appointments raised $5 million in a round led by Spring Mountain Capital. The company recently completed work on its marketing automation platform, which adds a patient messaging component across online and mobile platforms.

ConsejoSano — $4.9 million. San Francisco-based ConsejoSano, which makes a health services navigation platform for Spanish speakers in America, raised $4.9 million in Series A funding in a round led by 7wire Ventures. Tufts Health Ventures, TOTAL Impact Capital, Wanxiang Healthcare Investments, Acumen, Oxeon Partners and Impact Engine also contributed, bringing the company’s total funding to date at $7.2 million.

Bivarus — $4 million. Bivarus, a Durham, North Carolina-based company offering an algorithm-driven approach to patient feedback, raised $4 million in second round funding. Hatteras Venture Partners led the round with additional participation from Excelerate Health Ventures, NueCura Partners, and Boston Millennia Partners — all existing investors.

SnapMD — $2.3 million. Telemedicine platform provider SnapMD raised $3.25 million in Series A financing, bringing the company’s total funding to date at $9.15 million. The funding will be used to advance SnapMD’s core offering, the Virtual Care Management platform, by expanding sales and marketing efforts as well as securing new partnerships. The investors were not disclosed.

DarioHealth — $3 million. Israel-based DarioHealth, makers of a smartphone-connected glucometer, raised $3 million as part of a definitive agreement for a total aggregate raise of $5.1 million.  Crowdfunding equity platform OurCrowd Qure led the investment round. The company, which has also done business as LabStyle, said it will use the funding to expand the company’s existing markets as well as move into new geographic areas.
 
Tilak Healthcare — $2.7 million. French startup Tilak Healthcare, which is developing video games intended to diagnose and follow-up with chronic diseases, raised $2.7 million (2.5 million euros) from the iBionext Growth Fund. The fund is part of the French management company iBionext network, which identifies, funds and helps expand healthcare startups.

Pond Healthcare Innovation — $2.1 million. Stockholm, Sweden-based Pond Healthcare Innovation, maker of smartphone-connected spirometer Air Smart, raised $2.1 million (2 million euro) in seed funding from Swedish investment company Spiltan. Using the funding, Pond Healthcare Innovations will build out its team, continue to develop its product, and step up commercialization efforts.

Geneva Health Solutions — $1.9 million. Pasadena, California-based Geneva Health Solutions, which makes a remote monitoring platform for cardiology practitioners, raised $1.9 million in Series A funding in a round led by Nebraska Medicine, an early adopter of the cloud-based platform that aggregates data from a patient’s implanted cardiac device to their provider. The funding will be used to carry the company through the next year as they work to get cardiology practices around the country onboard with their Remote Monitoring as a Solution (RMaS) platform.

iExhale — $1.9 million. Los Angeles-based online mental health company iExhale raised $1.86 million in seed funding in a round led by Dorilton Capital. The company, which makes an iOS app that allows people to instant message with licensed therapists or simply share anonymously how they are feeling or offer support to others on the iExhale social network, plans to use the funding to build upon its current offerings and take the platform national.

Clinical Research IO — $1.6 million. Cambridge, Massachusetts-based Clinical Research IO, which developed an electronic platform for researchers to quickly capture data during clinical trials, raised $1.6 million in seed funding in a round led by NXT Ventures and Rally Ventures. The latest funding brings the company’s total to $2.4 million. The funding will be used to develop Clinical Research IO’s sales and vendor partnerships.

Cohero Health — $1.5 million. New York City-based Cohero Health, which develops connected health tools and technologies for chronic respiratory diseases, closed a $10.5 million Series A round. This builds on the company’s earlier $9 million Series A round from late 2016, and the extra $1.5 million comes from new strategic investors Samsung Next and Omron Healthcare.

betterPT — $1.5 million. New York City-based betterPT raised $1.5 million for its mobile platform for connecting patients to physical therapists. Loeb Holding Corp was the sole investor in the seed round.

Pops! Diabetes Care — $1.2 million. Minnesota-based Pops! Diabetes Care, which is working on a digital device and diabetes management platform, has raised a little over $1.2 million to bring its product to market. Other than Minneapolis accelerator Treehouse Health, the investors weren’t disclosed.

Akos — $1 million. Akos, a recently launched mobile-based telemedicine platform, raised $1 million from a group of local physician investors. Starting in Arizona, with plans to expand nationally by 2018, the company offers video and audio telemedicine visits via a mobile platform. Akos is using the funding to expand marketing efforts for their service. While they are offering packages to employers, their primary focus is on direct-to-consumer.
 
LiveSmart — $870 thousand. Livesmart, a London-based company offering technology-enabled health assessments and health improvement programs for employees, raised a seed round of about $870,500 (or 700,000 pounds). Individuals put up the round, including Matt Merrick and Lawrence Mitchell.

Therapia — $750 thousand. Therapia, a Toronto-based startup that uses technology to help patients schedule physical therapy appointments in their home, raised $750,000 in seed funding. The investors were individuals in the healthcare space, including Dr. Anthony Romeo, a surgeon for the Chicago White Sox.

VitalTrax — $150 thousand. VitalTrax, a Philadelphia-based startup focused on patient engagement in clinical trials, received a $150,000 seed investment. It is the first investment from a new $6 million digital health fund, launched this past December, led by Ben Franklin Technology Partners, Safeguard Scientifics, and Independence Health Group.

Toolbox Genomics (undisclosed). Toolbox Genomics, a company that offers actionable health insights based on customers’ sequenced genomes, raised a small round of seed funding to support its February product launch.

Spoke Health (undisclosed). Denver, Colorado-based Spoke Health, a startup that makes a platform called SurgeryHub to help employees find lower prices for surgery, launched out of stealth mode with an undisclosed round of seed funding. The round comes from a combination of angel investors, friends and family, and the managing director of a private equity fund.

Bigfoot Biomedical (undisclosed). Milpitas, California-based Bigfoot Biomedical, a diabetes management company working on their first product, announced an investment from the Juvenile Diabetes Research Foundation (JDRF)’s newly launched venture fund, T1D, focused on early stage companies working on type 1 diabetes. The funding will be used to further develop Bigfoot’s automated insulin delivery service called smartloop.

GluSense (undisclosed). GluSense, an Israeli medical device company, also announced an undisclosed investment from the JDRF T1D Fund. GluSense is being incubated in the Rainbow Medical innovation house, a private investment company that seeds and grows medical device companies.The company’s first product in development is Glyde, a longterm injectable glucose sensor. The device would be implanted under the user’s skin and would last for a year, wirelessly transmitting continuous glucose data to a consumer wearable — a smartwatch, for example.

PokitDok (undisclosed). San Mateo, California-based PokitDok, which offers a suite of API-based software tools for appointment reminders, price transparency, patient check-in, and more, has received a new investment from the investment arm of Guardian Life Insurance Company of America. While the company didn’t disclose the amount of the investment, they did say it will be used to fund the development of a blockchain for healthcare, dubbed DokChain.

CarePredict (undisclosed). CarePredict, a Fort Lauderdale, Florida-based company that makes a wearable for at-risk seniors, raised an undisclosed funding round led by Las Olas Venture Capital, a fund that invests in innovative tech startups and previously invested in telemedicine company MDLive.

Mango Health (undisclosed). Digital health company Mango Health, which makes a gamified app for patient engagement and medication adherence, announced a strategic investment from — and longterm partnership with — Express Scripts, the largest pharmacy benefit management organization in the United States. The amount of the investment was undisclosed.
 

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