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 $100 million – this is like Noom plus exercise in India.—Matthew Holt
The “platform-ization” of chronic condition care continues among digital health companies and Nasdaq-traded Dario Health ($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
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
Stealthy telehealth startup Wheel just closed a $50M series B and CEO Michelle Davey is here to reveal the mystery behind the company’s very behind-the-scenes approach to selling white-label virtual care. The business model is built on a network of clinicians that Wheel has curated and credentialed specifically for virtual care delivery – for a rotating cast of clients, under any brand, at any time. Unlike the market-leading incumbent telehealth co’s that also sell virtual care infrastructure, Wheel does NOT have a patient front door, isn’t angling for one, and is so protective of its clients’ brands that Michelle won’t even name names about who her company is working with. She simply describes her clientele as those in the biz of “next gen” virtual care: retail players, care-plus-pharmacy-delivery startups, asynchronous care providers, labs, remote patient monitoring companies, and so on.
Wheel experienced 300% year-over-year growth — and 1200% growth from Q4-2020 to Q1-2021 — but is it sustainable as the pandemic wans and other plug-and-play telehealth infrastructure services also gain market traction and funding? And, what about the common criticism that telehealth is too transactional and that both patients AND physicians prefer the opportunity to build deeper relationships? Do providers really want to practice for multiple companies at the same time? We get a look inside Wheel’s 90% clinician retention rate to see what else might be satisfying the clinician’s need to connect, and talk about areas for growth now that the company’s received fresh funds.
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 $12 million in a Series A for its obesity telehealth platform. —Matthew Holt
Privia Health ($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 $817 million in revenue in 2020 – and Shawn says they’ll only expand from here. What’s the growth plan? Value-based care models are often criticized as “un-scalable” – what does Shawn say to combat that? A great, detailed chat that pitches a hopeful end to fee-for-service healthcare and a promising future for a newly public healthcare co.
Sharecare ($SHCR) starts trading on the NASDAQ tomorrow and CEO Jeff Arnold has come back to catch us up on what’s happened since April when we first spoke and took a deep-dive into Sharecare’s population-health-slash-care-navigator-slash-health-security business model. That interview (watch here: https://youtu.be/P6DzFbtiLWg) digs into the $400 million/year revenue model Jeff’s built so far, and now THIS CHAT picks up where we left off — mere hours before Sharecare heads into the public market. valued at just under $4 billion dollars, with ZERO Debt and $400 million in cash to invest in scaling up.
Turns out a lot can happen while you’re waiting for your paperwork to be signed! So what’s new? How about the $50 million dollar private placement Anthem has made into business? Jeff explains how this kind of backing from the country’s second largest health insurance company is not only a win when it comes to securing a customer base, but also how it will likely impact product roadmap. The Anthem investment was closely linked to Sharecare’s January acquisition of health tech startup Doc.AI, which had been working with Anthem on some very payer-friendly tools that will likely be expanded. And speaking of expansion? Jeff’s already made more than a dozen acquisitions to build up Sharecare’s three main verticals over the years– what else could they possibly need now? Tune in for all the last-minute news and numbers before $SHCR pops tomorrow!
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