DynamiCare Health Secures $4.1M Seed Funding to Commercialize Digital Platform for Addiction Treatment

VCBeat (WeChat Official Account: vcbeat) has learned that on April 2, local time, DynamiCare Health, headquartered in Massachusetts, USA, announced the completion of a $4.1 million seed financing round. The round was led by Hyperplane Venture Capital, with participation from former U.S. Representative Patrick J. Kennedy and several individual investors.

In 2016, Eric Gastfriend, a technology executive with an MBA from Harvard University, co-founded DynamiCare Health with his father. Notably, his father is David R. Gastfriend, an internationally recognized expert in addiction psychiatry. DynamiCare Health is a digital platform designed based on the principles of Contingency Management (CM) to address substance use disorders. By establishing accountability and reward systems, it helps users modify their frequency of drug, alcohol, and tobacco use. Contingency Management is an effective approach that leverages incentive mechanisms to improve addictive behaviors.

Users can undergo alcohol and saliva drug testing via the digital platform’s integrated breathalyzer and test kits at any time and from any location, with verification conducted through self-recorded videos. The platform also utilizes GPS to monitor whether users are adhering to health guidelines. Based on user behavior, the platform provides corresponding rewards. The funding for these rewards comes from donations made by the users’ family members or friends. Users can only earn rewards by maintaining a healthy lifestyle and completing treatment tasks. DynamiCare Health’s incentive-driven approach has been proven effective in over 100 randomized controlled trials and has been implemented in seven addiction treatment programs across the United States. The proceeds from this financing round will be used to commercialize the digital platform, enabling users to access it via mobile phones, and to advance remote health recovery coaching services that incentivize users to achieve their personal health goals.

Schematic Diagram of Digital Platform Applications (Source: DynamiCare Health Official Website)

Vivjan Myrto, Founder and CEO of Hyperplane Venture Capital, stated: “DynamiCare Health is a user-friendly platform designed to address the complexities of addiction, offering a solution for the millions of Americans affected by this crisis.”

“We appreciate the support of our investors and look forward to collaborating with them to further develop our platform, enabling us to deliver effective recovery tools directly to those in need and address gaps in addiction treatment,” said Eric Gastfriend, Co-Founder and CEO of DynamiCare Health.

“DynamiCare Health has fostered innovation and application in community-based care. For most people, behavioral interventions are prohibitively expensive, preventing timely treatment for addiction,” said Patrick J. Kennedy, former U.S. Congressman and founder of DontDenyMe.org. “DynamiCare’s platform offers a more accessible option for payers, employers, families, and individuals.”

Hyperplane Venture Capital is a seed-stage investment firm based in Massachusetts, USA. Hyperplane’s investment focus spans fintech, robotics, digital health, and industrial automation.

Reference Link:

http://www.finsmes.com/2019/04/dynamicare-health-raises-4-1m-in-seed-funding.html

https://www.dynamicarehealth.com/news/2019/4/2/dynamicare-health-raises-41-million-to-launch-digital-platform-for-addiction-recovery

(Compiled by Liu Na)