Today on Health in 2 Point 00, we have a deal so big it’s brought me out of vacation just for this episode! Amwell acquires not one, but TWO companies – DTx mental health company SilverCloud Health and chatbot company Conversa Health for a combined $320 million. In other news, mental health company Sondermind raises $150 million, bringing their total to $188 million, and femtech company Elvie raises $80 million, bringing their total to $133.9 million. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
SonderMind closes a $150M Series C funding round co-led by Drive Capital and Premji Invest, and we get CEO Mark Frank’s take on what sets THIS digital mental health startup apart from a pack of very well-funded competitors. SonderMind has its own behavioral health therapists, built its own tech stack, delivers care virtually AND in-person, is covered by some of the biggest health plans in the country — Aetna, Anthem, Bright Health, Cigna, Kaiser, Optum, and United Healthcare. (They can also namedrop health-tech-infamous Board member, Jonathan Bush, in an interview, but that’s beside the point!)
What’s most remarkable – and what Mark says most impressed investors this time around – is not only the health of SonderMind’s business model, but also its balance sheet. This raise marks the bulk of the total $183M the startup has raised to-date, and Mark reveals that they’ve only deployed about half of the $27M Series B funding they received in April 2020 in a round led by General Catalyst. How will such a “capital efficient” business begin to deploy these new funds? We hear Mark’s plans for nationwide expansion and improvements to that tech stack, particularly when it comes to better matching therapists and patients based on expertise and need, and more appropriately measuring process and outcomes. Two areas ripe for more tech integration as the mental health provider tackles what Mark calls THE defining health issue of our generation.
Today on Health in 2 Point 00, Jess and I chat about the staggering medical debt in this country before diving into some more health tech deals. First up on Episode 224, personal health record company b.well Connected Health raises $32 million, bringing their total to $57 million. Next, Quit Genius raises $64 million in a Series C, bringing the digital addiction clinic’s total to $78.6 million, and Swedish telehealth company Doktor.se raises €29.5 million – there are some interesting investors in this one. Sweetch, a Bayer G4A company, raises $20 million for its behavior change app and Kno 2 raises $15 million in a Series A in yet another interoperability play. Finally, Healthify.Me raises $75 million, bringing its total to $100 million – this is like Noom plus exercise in India. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
The “platform-ization” of chronic condition care continues among digital health companies and Nasdaq-traded Dario Health ($DRIO) has acquired TWO different startups in 2021 alone to augment their core diabetes management offering and keep up. Both wayForward and Upright are now under the Dario Health banner and CEO Erez Raphael reveals the strategy behind the two buy-outs — which cost the company just about $30M each and will add digital behavioral health and musculoskeletal care for chronic pain to the Dario experience.
Erez believes that the promise of digital health and digital therapeutics is hyper-personalization, and that addressing multiple conditions at the same time, in a seamless integration, is the way to deliver on that value prop. But, he’s not alone. Teladoc’s Livongo, Vida Health, One Drop, and Omada Health are well-funded competitors pitching the same promise of integrated virtual care. So, how will Dario Health stand-out? Erez points to the company’s direct-to-consumer beginnings and tech expertise as differentiators – will that be enough in the crowded US employer and health plan market OR is the total addressable market large enough for Dario to grab a significant share? We chat chronic condition care market penetration strategy with one of its few publicly traded digital health companies.
Today on Health in 2 Point 00, Jess has finally reclaimed her Twitter account! On Episode 223, Jess asks me about Carbon Health raising $350 million, this is a big competitor for One Medical with retail clinics plus telehealth. Next, for digital mental health care, Woebot gets $90 million for its mental health chatbot. Eight Sleep raises $76 million working on sleep fitness, with lots of celebrities in this one. Aidoc raises $66 million in a round led by General Catalyst, using AI to analyze medical images for chronic conditions. Finally, real world evidence company OM1 raises $85 million, bringing their total to $170 million. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Digital mental health unicorn Ginger has just launched ‘Ginger for Teens’ in an effort to help the 1-in-5 teens currently suffering from mental health disorders, amid what’s being called a “teen mental health crisis.” No doubt parents are at their wit’s end searching for care, and Ginger is hoping that its teen-friendly bundle of self-guided content, behavioral health coaching, and video therapy will support a “full-family” approach to mental health care that will help everyone feel a bit better.
Ginger’s Chief Clinical Officer, Dr. Dana Udall, and Adolescent Services Coordinator, Dr. Dena Scott, share their insights on the teen mental health crisis, including the myriad factors they had to consider as they re-tooled Ginger’s offering to meet the needs of this new client base. Ginger for Teens will roll out to all of Ginger’s nearly 650 employer clients by the end of the year, helping teens gain access via their parents’ health plans at work. And beyond Ginger’s employer-sponsored health plan base? Will Ginger for Teens roll out to its health plan clients too? Don’t think we forgot about that first-of-its-kind national contract with Cigna and the potential that partnership could hold to help millions of families nationwide. So, what are the big plans for bringing up the supply-side of teen mental health care? Find out more by tuning in…
Today on Health in 2 Point 00, Jess and I cover Availity raising $50 million bringing their total to $200 million and a valuation at over a billion. Revenue cycle management company Visiquate raises $50 million, bringing their total to $70 million. Truveta raises $95 million for its data analysis platform, and finally Bayesian gets $15 million using AI to predict sepsis. —Matthew Holt
Today on Health in 2 Point 00, the funding reports are out: Rock Health is saying $14.7 billion for the first half of the year, and Startup Health is saying $20.1 billion. Those numbers are pretty much what the numbers were for ALL of 2020. Now onto some deals: on Episode 221, Jess asks me about Novacardia raising $57 million for its cardiology practice management business. Wellthy raises $25 million, bringing its total up to $50 million – this is a caregiving navigation concierge firm aimed at employers. Osso VR raises $27 million in a Series B, less than a year after closing their A, working on virtual reality for practicing surgery. Finally, Form Health raises $12 million in a Series A for its obesity telehealth platform. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Privia Health ($PRVA) went public a few weeks ago and the stock not only popped when it hit the market, but has continued to rise. When you look at the numbers – and hear about the business model from CEO Shawn Morris – it’s easy to get excited and see why. Privia calls itself a “physician enablement” business, which is the two-word marketing way of saying that they bring together different docs in a region and give them the systems to become part of a value-based care network while also maintaining their private practices. They’re more or less building accountable care organizations (ACOs) in a hub-and-spoke fashion, uniting docs around Privia’s common tech systems, workflow processes, value-based care strategies, and contracting power with commercial and government payers. The model is appealing to docs who want to make the switch to value-based care, but still want the autonomy of their own practices. The value prop has already attracted more than 2,700 providers in 650 different locations netting the biz $817 million in revenue in 2020 – and Shawn says they’ll only expand from here. What’s the growth plan? Value-based care models are often criticized as “un-scalable” – what does Shawn say to combat that? A great, detailed chat that pitches a hopeful end to fee-for-service healthcare and a promising future for a newly public healthcare co.
Today on Health in 2 Point 00, I’m cheering England’s win against Germany this week – but Jess keeps us on track with health tech deals. Olive gets another $400 million, bringing their total up to $902 million – with $802 million of that since March 2020. Tendo Systems gets $50 million in a Series A, working on communication between providers and consumers. General Catalyst strikes again, this time in a round with SWORD Health raising $85 million in a Series C, bringing their total to $135 million. This is an MSK company, with a lot of good investors here. Finally, Ro buys Kit an at-home testing company – how does Hims stack up now? And, in case you missed it, Sharecare hits the NYSE today – get the scoop from Jess’s interview with their CEO yesterday. –Matthew Holt