Cityblock Health Secures $65 Million Series B Funding to Expand Primary Care Platform for Low-Income Communities

VCBeat (WeChat ID: vcbeat) has learned that on April 11, U.S. healthcare company Cityblock announced the completion of a $65 million Series B financing round. The round was led by Redpoint Ventures, with participation from Sidewalk Labs, Thrive Capital, Maverick Ventures, and Town Hall Ventures.

Cityblock previously completed its seed and Series A funding rounds in 2017 and 2018, respectively, having raised a cumulative total of over $85.8 million to date.

Cityblock’s Financing History

Cityblock is a healthcare company that provides enhanced care services to low-income communities, headquartered in New York, USA. Eighteen months ago, the company launched Commons, a new care service platform that enables its teams to easily and efficiently deliver collaborative care to each member, from admission alerts to tracking treatment progress, thereby maintaining real-time visibility into every member’s status.

“The current healthcare service model is fundamentally unsuitable for the majority of people in low-income communities. Today’s hospital-based acute care system is reactive rather than proactive. This type of care is expensive and often unnecessary,” said Iyah Romm, Founder and CEO. “By providing preventive care to improve people’s health and daily lives, we can effectively reduce the likelihood of disease.”

Service Process (Source: Cityblock Official Website)

Cityblock operates on a membership model, requiring users to apply for membership to access its services, which include:

1. Community Health Partners: Understand users' priorities and needs to help them access the right care and services;

2. Care Team: Includes primary care physicians, care managers, behavioral health specialists, and psychiatrists, providing 24/7 user support;

3. Meet flexible care needs anytime, anywhere: provide advice to users at home, in Cityblock communities, or elsewhere, even via phone or video;

4. A Community Hub: Meet with the care team or connect with others.

If users meet the requirements of government health programs, Cityblock will not charge them any fees; the costs will be covered by insurance funds.

“This round of funding will be used to continue expanding our team and market share, as well as broadening the range of services offered to members,” said Iyah Romm. “Last month, through our partnership with ConnectiCare, we expanded our operations to Waterbury, a central Connecticut city. Later this year, we will collaborate with Blue Cross North Carolina to better serve communities across the state.”

Redpoint Ventures is a U.S.-based venture capital firm established in 1999, specializing in seed-stage and growth-stage investments in the healthcare sector. To date, the firm has invested in 501 companies, with 155 achieving initial public offerings or being acquired, and manages approximately $4.8 billion in assets.

Sidewalk Labs, founded in 2014 and headquartered in New York, USA, is designing a district on Toronto’s East Waterfront to address contemporary “big city diseases,” with the aim of establishing Toronto as a global hub for urban innovation.

Thrive Capital is a venture capital firm focused on the internet and software sectors. Since its inception, the company has raised capital from institutional investors, including Princeton University, the Wellcome Trust, and Hall Capital. Recently, Thrive Capital led Instagram’s $50 million Series B financing round at a $500 million valuation.

Maverick Capital is a global investment firm established in 1993, having invested in more than 100 companies to date.

Town Hall Ventures is a venture capital firm headquartered in New York, USA, specializing in investments in the healthcare sector.

Reference Links:

https://www.cityblock.com/

https://medium.com/@cityblockhealth/better-care-block-by-block-22f6fb7a1ea7

(Compiled by: Yang Shaobo)