Today on Health in 2 Point 00, the survey says digital health is optimistic! Find out more on the other side. On Episode 207, Jess asks me about Aetion getting $110 million bringing its total to $212 million working on real world evidence for pharma companies, and Indonesian telehealth company Halodoc gets $80 million. MSK startup Vori Health gets $45 million—can they compete with Hinge? Next, Heartbeat Health gets $20 million for cardiovascular health. Finally, Andreesen throws $10.5 million in a Series A to Memora Health which is a patient messaging system. Don’t forget to join us on Clubhouse tonight for more! —Matthew Holt
The Catalyst @ Health 2.0/Wipfli State of Digital Health Survey
By MATTHEW HOLT & ELIZABETH BROWN
Last year was a remarkable time for digital health. Obviously it was pretty unusual and tragic for the world in general as the COVID-19 pandemic continued to wreak havoc. We mourn those lost, and we praise our front line health workers and scientists. But for digital health companies, in almost no time 2020 changed from fear of a market collapse to what became a massive funding boom.
But no-one has reported from the ground what this means for digital health companies, of which there are perhaps 10-15,000 worldwide with maybe 6-8,000 based in the United States. Despite the headlines, most are not pulling down $200m funding rounds or SPACing out. So working with professional services firm Wipfli, we at Catalyst @ Health 2.0 decided to find out what digital health companies experienced in this most extraordinary year.
Between Thanksgiving 2020 and mid-March 2021, we surveyed more than 300 members of the digital health ecosystem, focusing on leaders from more than 180 private (and a few public) digital health companies. We asked them about their market, their experience during COVID-19, and what they thought of the environment. We also asked them about the mechanics of running their businesses. The results are pretty interesting.
The Key Message: COVID-19 was very good for digital health companies–on average. Most are very optimistic but, despite the massive increase in funding since the brief (but real) post-lockdown crash, most digital health companies remain small and struggling for funding, revenue, and customers.
We also heard from investors, and a bigger group we called “users” (mostly payers, providers, pharma, non-healthcare tech companies, e-patients & consultants). While these “users” also saw a big trend towards the use of (and, to a lesser extent, paying for) digital health tools and services, they were not as gung-ho as were digital health companies or investors, who were even more optimistic.
The summary deck containing the key findings is below and there is more analysis and commentary below the jump.
#Healthin2Point00, Episode 206 | Walmart buys MeMD, Science 37 SPACs out, Vim & Zoe
Today in #Healthin2Point00, Jessica is not impressed by my stock trading and it’s all Walmart’s fault (well, Amazon’s too)! Part of the reason for that is Walmart buying a no-name telehealth company–well it has a name but not one anyone knows. There’s a SPAC exit on the horizon for fast growing remote clinical trials company Science37, and funds for Vim which does scheduling (we think!), and Zoe which sells a diet so expensive you might actually stick to it!–Matthew Holt
#Healthin2Point00, Episode 205 | Groups, Collective Health, Oura Ring & Ciitizen buys Stella
Today on Health in 2 Point 00, it’s time for the silliness to end, and for Jess DaMassa and I to take digital health deals seriously. Groups gets $60 million from a bunch of famous investors. Oura, they of the tracking ring used by the NBA, gets $100m, and TPA substitute Collective Health gets a whopping $280m from a big Blues plan. And our favorite privacy maven Deven McGraw gets a mention as her company Ciitizen buys interoperability tech company Stella. Did we maintain our serious demeanor? You’ll have to watch to find out but you can probably guess the answer! —Matthew Holt
#Healthin2Point00, Episode 204 | Vida, Headway, & Neuroelectrics, plus RCM acquires VisitPay
Today on Health in 2 Point 00, I am over the moon excited about Chelsea’s Champion’s League semi-final win. But on Episode 204, we have some big deals to cover too. First, Vida Health gets $110 million in a Series D bringing their total to $188 million. Next, R1 RCM acquires VisitPay for $300 million, integrating patient financial engagement into their revenue cycle management offerings. It’s Mental Health Awareness Month, and mental health startup Headway raises $70 million – do they have a chance in that crowded space? Finally, Neuroelectrics gets $17.5 million for their neurostimulation cap helping with epilepsy and depression. —Matthew Holt
THCB Gang Episode 53, Thursday May 6
Episode 53 of “The THCB Gang” was live-streamed on Thursday, May 5 at 1pm PT -4PM ET. Matthew Holt (@boltyboy) was joined by regulars: futurists Ian Morrison (@seccurve) & Jeff Goldsmith; privacy expert and now entrepreneur Deven McGraw @HealthPrivacy; policy expert consultant/author Rosemarie Day (@Rosemarie_Day1); medical historian Mike Magee (@drmikemagee), & THCB regular writer Kim Bellard (@kimbbellard)
Matthew was celebrating Chelsea’s Champion’s League Semi final win, but the rest of the gang talked about some big picture issues behind public health, COVIUD and health care policy!
The video is below but if you’d rather listen to the podcast. it will be available on our iTunes & Spotify channels from Friday.
#Healthin2Point00, Episode 203 | Privia goes public, Vocera acquires PatientSafe Solutions & more
Today on Health in 2 Point 00, Jess hardly knows the value of $100 million anymore – is it a salary, is it an entire fund, is it one single round? On Episode 203, Jess and I cover Vocera buying PatientSafe Solutions and Privia going public with a $3.7 billion market cap. Cash-paid healthcare services company Sesame gets $24 million in a Series B, Ceribell gets $53 million in a Series C for its portable EEG, and Summus Global gets $21 million in a Series B providing virtual specialist care. —Matthew Holt
#Healthin2Point00, Episode 202 | Virta, Seqster, Kaia, Capsule & Accolade acquires PlushCare
On Health in 2 Point 00, Jess and I talk about TDOC earnings before getting into today’s deals. First, Virta Health scores $133 million in a round led by Tiger Global for its keto diabetes reversal program. Seqster raises $12 million in its Series A, and there are some interesting investors in this one. MSK startup Kaia Health raises $75 million, bringing its total to $123 million. Online pharmacy Capsule raises $300 million, bringing its total to $570 million. Finally Accolade acquires virtual primary care platform PlushCare in a $450 million deal. —Matthew Holt
#Healthin2Point00, Episode 201 | European Funding Deals – complete with accents!
Today on Health in 2 Point 00, we’re back from our 200th episode celebration! In Episode 201, we have an all-European funding deals episode for you, and I even attempt to answer every story in an accent relevant to the company. First, French insurance company Alan raises €185 million. Scottish company Current Health raises $43 million in a Series B for remote patient monitoring. Thankfully we have an English company in the mix, Proximie raises $38 million, bringing their total to $48 million – they do AR for the OR. Kry, a Swedish telehealth company with 3 million visits, raises $316 million bringing their total to $570M. Finally, German company Caresyntax raises $100 million bringing their total to $177M doing data analytics around surgery. —Matthew Holt
The “Health Tech Responds to COVID-19” Showcase Webinar!
By ELIZABETH BROWN
Catalyst @ Health 2.0 is excited to be hosting the Health Tech Responds to COVID-19 Showcase Webinar, sponsored by the Robert Wood Johnson Foundation! A little under a year ago, Catalyst, with the support of the Robert Wood Johnson Foundation, launched the “Health Tech Responds to COVID-19” platform to maximize the health tech community’s response to the pandemic. The platform features an “Always on” Rapid Response Open Calls (RROCs); a blog/informational website to showcase innovators and experts in this space, and the development of a comprehensive database that allows the public to search and filter for innovative solutions – SourceDB for COVID-19.
With RWJF’s support, Catalyst has opened up the platform to the larger digital health ecosystem and sought organizations interested in sourcing novel technologies, both COVID-19-specific and those with a broader scope. In this video, we hear from some of our Rapid Response Open Call hosts and participants as well as some special guests like John Brownstein discussing VaccineFinder and Jacob Reider talking about the problems of how to manage the vaccine process among the underserved. This is a great discussion of past, present, and future opportunities that have emerged with the global pandemic.
Elizabeth Brown is a Program Manager at Catalyst @ Health 2.0
