Apostrophe Secures $6M Seed Funding to Advance Personalized Dermatology Care via Online Consultations and Integrated Pharmacy

VCBeat (WeChat ID: vcbeat) has learned that on December 5, 2019, dermatology healthcare company Apostrophe announced the completion of a $6 million seed funding round. The round was led by SignalFire, with participation from FJ Labs. Since its inception, Apostrophe has raised a total of $6.5 million.

Apostrophe, founded in 2014 and headquartered in Oakland, California, is a healthcare company dedicated to addressing dermatological conditions. The company has assembled a robust team of dermatologists, each board-certified by the American Board of Dermatology. Apostrophe’s vision is to eliminate pain points for patients with skin conditions, such as excessive wait times at hospital clinics.

Apostrophe connects users with board-certified dermatologists, who then develop personalized prescription acne medications and treatment plans for these patients. Apostrophe also operates a vertically integrated mail-order pharmacy, facilitating easier implementation of treatment plans. The initial consultation fee is $20, which Apostrophe credits toward the cost of the patient’s first prescription.

The Apostrophe system requires registered users to submit photos of their skin conditions and complete a questionnaire, with board-certified dermatologists providing diagnoses within 24 hours. The Apostrophe platform facilitates doctor-patient communication, relying solely on interactions between physicians and patients for diagnosis, rather than using data and machine learning to replace dermatologists.

After a dermatologist makes a diagnosis and prescribes medication, patients can purchase the drugs on the Apostrophe platform and benefit from Apostrophe’s free shipping; the pharmaceutical business is Apostrophe’s primary revenue stream. Apostrophe contracts with physician groups to provide dermatologists for patients but does not have direct employment relationships with these physicians. This arrangement helps maintain a clear boundary with dermatologists, thereby enhancing the quality and integrity of the medical care process.

Apostrophe founder Holber stated, “In a world with millions of online products, there is a significant premium when customers receive true personalization and individualized interaction. A dermatologist’s brain actually processes information very rapidly; a skilled dermatologist can assess a condition and formulate a treatment plan in just a few seconds.”

SignalFire, founded in 2013, is a venture capital firm based in San Francisco, California, primarily investing in seed-stage and early-growth-stage companies. The firm provides up to $5 million in funding and access to a platform of top talent for seed-stage companies, while offering $20 million in capital and talent solutions to help early-growth-stage companies scale their teams and connect with strategic partners.

FJ Labs, established in 2015, is a venture capital firm based in New York, USA, specializing in investments in market- and consumer-oriented startups. The company primarily engages in seed and Series A investments, with investment amounts ranging from $50,000 to $5 million.

(Compiled by Jiang Ying)