Capital Raising Activity

23andMe, the consumer genetics and research company based in Mountainview, CA raises $250 million led by Sequoia Capital bringing total funding to $480 million
The company has successfully overcome many challenges. In 2013, FDA’s crackdown on the company’s direct sale to consumers model almost shut its doors. That is all behind us. 23andMe is equipped with enviable genetic data bank. The company has over one billion phenotypic data points paired with its broad genetic panels. Rapid patient recruiting for a variety of illnesses is one of its most valuable capabilities. But the bigger question is this, would 23andMe get into drug development in a serious way and compete with its pharma clients. The fact that they hired the former Genentech executive, Richard Scheller, to lead its biotech team should be a hint.

Availity of Jacksonville, FL receives a significant growth equity investment from Francisco Partners
We should probably get ready for some action with this name. In July Availity raised $200 million of debt. In addition to the equity injection by Francisco, Availity is shoring up its war chest. The company had been the only big RCM player which was 100% owned by health insurers. The fact that the ownership structure is now open to a private equity firm, tells us that the shareholders are now ready for an eventual exit.

Tempus Labs based in Chicago, IL snatches $70 million funding from NEA and others bringing total funding to $130 million
Tempus develops a library of molecular and clinical data which serves as a physician tools for diagnosis and treatment of cancer. It is widely rumored that post money valuation for this round is $700 million. NEA is also an investor in 23andMe.The founders of the Tempus were formerly with Groupon.

Talkspace of New York, NY, raises $31 million from Norwest, Softbank and others bringing total funding to $60 million

This is a company built on the clever idea of virtual therapy. At least a dozen companies have raised some serious money in the sector, but then again, the mental health market is a huge industry in the US. Talkspace has 500,000 clients who pay as little as $32 a week to have 24×7 access to therapists.

True North Health Navigation (DispatchedHealth) of Englewood, CO secures $30 million in funding from Alta Partners and others

The company offers on-demand, on-site healthcare services delivered in the home or senior care facilities. The service was designed to promote access to complex care and bring the treatment to a patient’s home.  Through a mobile app or a smart phone, the patient or a care giver explains the symptoms and True North delivers the required care via their unique mobile acute care platform. The funds will be earmarked for geographical expansion beyond Colorado. The “last mile” access for complicated cases could become a big business.  

SetPoint Medical of Santa Clara, CA rounded up $30 million in its series D from NEA, GlaxoSmithKline, Medtronics and others bringing total funding to $90 million

Bioelectronic therapies, based on implantable devices that stimulate the body to heal itself from disease, are increasingly being looked to as alternative treatments for inflammatory diseases. SetPoint’s bioelectronic platform is designed to stimulate the body’s natural Inflammatory reflex and trigger an anti-inflammatory effect. We celebrate any technology that can replace the tens of billions of dollars of R&D that pharma needs to spend to discover a cure. Bioelectronics literally elicit biochemical changes in the body that are typically brought about by drugs.

Analyte Health of Chicago, Il raises $27 million

The company is a beneficiary of the growth of digital health companies. Analyte, via arrangement with local labs, collects specimen at home on behalf of many telehealth organizations. They have delivered more than 2.2 million test results since their inception in 2009. Teladoc uses the company for remote patients. This is what we call “trickle-down economics”.

PatientSafe Solutions based San Diego, CA raises $25 million led by Highbar Partners bringing total funding to over $150 million

The company’s technology allows care teams to communicate and work together via PatientSafe’s mobile platform. The solution unifies clinical communication with critical workflows in a single app. The service is one of the most comprehensive in the industry which also covers rounding, specimen collection, nursing documentation and patient relationship management. More than 80 healthcare institutions use the technology today.

Call9 of Brooklyn, NY raises $24 million from Redmile, Index Ventures and others bringing total funding to $34 million

We all know how difficult it is to bring quality emergency care to nursing homes. Call9 is trying to solve that problem via its tele-EM platform. Call9’s video visits service connects nursing home patients to an emergency room doctor. The company sets up the system in nursing home facilities and provides them with the mobile devices preloaded with their software. When a resident has a concern, the facility’s nurse brings the tablet to them to make a call to a doctor on Call9’s system. Since nursing homes patients are the most frequent ER visitors, there is no doubt that this system would generate great savings. In a recent study, the company notes that they cut ER visits by 80% in one facility.

Precision Health Intelligence based in New York, NY raises $20 million in Series A from SymphonyAI Group and others

Precision has developed a technology platform focusing on application of AI to best in class oncology data. The company services pharma, providers and payers and uses Real World Data from EMRs, claims and diagnostic sources. Another great team trying to advance the cause of precision medicine.

98point6 based in Seattle, WA secures $19.5 million in Series B bringing total capital raised to date to $35 million

We like the name! This is another eVisit/video chat company connecting patients to board certified doctors. We will wait and see how the company will differentiate their services. We believe this game is all about expanding footprint. In the telehealth business you are either the hunter or the prey. Teladoc has demonstrated that it can be an effective consolidator of regional players.

Weave Communication of Lehi, UT and New York, NY raises $17 million Series B from Catalyst Investors and others

The Company provides voice, SMS, email and marketing services to dental and optometry offices. Weave combines VoIP phone service with a customer patient data from the practices management systems.  Thus far the company has raised close to $30 million.

BrainScope of Bethesda, MD raises $16 million

Brainscope is a hand-held device to aid medical professionals in the assessment of traumatic brain injuries including concussion. Not surprisingly the military and sport sectors are the bread and butter market for the company followed by ER and urgent care units. We are big fans of rapid diagnostic at the point of care. Total funding raised to date is $40 million. The company was founded in 2006.

Notable Labs based in San Francisco, CA lands $10 million in funding bringing total capital raised to $17 million

Matthew De Silva, the co founder of the company, is a renowned hedge fund executive. The genesis of the company goes back to the frustration he experienced when dealing with his father’s brain cancer. This is not a genomics company. Notable Labs helps oncologists in selecting the best FDA-approved drugs to combat leukemia (for starters) and  applies combination of approved treatments. We are not quite sure what the methodology is but the fact that Notable is working with some top hospitals is fairly encouraging.

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