Wellframe Secures $20 Million Series C Funding Led by BlueCross BlueShield Venture Partners to Advance Digital Health Advocate Platform

On November 19, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Wellframe, a Boston-based provider of digital health management solutions, had secured $20 million in Series C financing. The round was led by BlueCross BlueShield Venture Partners (BCBSVP), with participation from existing investors Threshold Ventures and F-Prime Capital.

In addition to the financing news, the company also announced that Mike Spadafore, Managing Director of BCBSVP, and Steve Martin, Honorary CEO of Blue Cross Blue Shield of Nebraska, will join Wellframe’s Board of Directors.

Wellframe plans to use the funding to hire talent at its Boston office, solidify its leadership in the digital health management market, and advance its digital health management solution, Digital Health Advocate. This solution not only addresses members’ clinical needs but also provides services such as care management, financial guidance, and healthcare system navigation.

Under the leadership of CEO and Co-Founder Jacob Sattelmair, Wellframe’s patented digital health management solution, Digital Health Advocate, expands the reach and effectiveness of its care teams by delivering interactive clinical programs to members’ smartphones or tablets. The company facilitates connections between members and their care teams by providing information relevant to their daily health, thereby empowering patients to become active participants in their care.

Jacob Sattelmair stated in a press release, “The funding secured today will accelerate our growth trajectory to capitalize on an unprecedented market opportunity. In a rapidly evolving market, health plans face mounting challenges, and we must differentiate ourselves. This round of financing demonstrates that we are working closely with our clients to reshape their relationships with members and deliver value.”

Spadafore said in a statement, “Wellframe plans to fundamentally redefine its relationship with members through digital support. The Digital Health Advocate will provide these plans with the opportunity to build on their experience in leveraging digital solutions for health management, thereby addressing a broader range of member needs.”

There are many health management tools on the market today. For example, CipherHealth is also a patient engagement and care coordination platform that completed $37.6 million in financing in 2018. Another company in this field is HealthCrowd, headquartered in San Mateo, California, which has built a digital platform for patient communication and analytics. HealthCrowd’s revenue last year was $7.2 million.

BlueCross BlueShield Venture Partners (BCBSVP) is a corporate venture capital fund program that primarily focuses on investing in promising emerging companies of strategic significance to the Blue Cross and/or Blue Shield plans.

Threshold is an early-stage venture capital firm spun out of DFJ Venture. The firm is dedicated to partnering with exceptional entrepreneurs, focusing its investments on consumer-oriented businesses and medical technology companies.

F-Prime Capital is a global venture capital firm investing in healthcare and technology, with over $2 trillion in assets under management. Over the past four decades, F-Prime Capital has invested in groundbreaking companies in the technology and life sciences sectors, including Atari, MCI, ROLM Corp, Alibaba, Ironwood Pharmaceuticals, and Ultragenyx.

(Compiled by Xiong Hui)