HealthJoy Secures $12.5M Series B Funding to Expand Remote Healthcare Monitoring Platform and Reduce U.S. Medical Costs

VCBeat (WeChat Official Account: vcbeat) has learned that on March 8, 2019, HealthJoy, headquartered in Chicago, USA, announced the completion of a $12.5 million Series B financing round. The lead investor was U.S. Venture Partners, with additional participation from Epic Ventures, Chicago Ventures, and Sidekick Fund. Jonathan Root, Co-Founder and M.D. of U.S. Venture Partners, will join the Board of Directors of HealthJoy.

Previously, in March 2016, HealthJoy completed a $3 million seed funding round, with GoHealth as the investor. In August 2017, HealthJoy secured another $3 million in Series A financing, primarily from Chicago Ventures.

HealthJoy is primarily dedicated to addressing one of the biggest challenges facing U.S. companies: the relentless rise in healthcare costs. Annual healthcare spending in the United States currently stands at $3.5 trillion, representing a more than 30-fold increase over the past four decades. To remain competitive, employers typically pass these escalating costs on to their employees. However, instead of adding to the financial burden on working families, HealthJoy lowers the barrier to accessing healthcare by leveraging a modern digital model that drives higher-value decision-making at a lower cost.

“Employees are frustrated by healthcare costs they can no longer afford, and companies cannot shift these costs any further. Employers have finally come to realize that addressing total expenditure requires tackling individual employees’ healthcare costs,” said Justin Holland, Co-Founder and CEO of U.S. Venture Partners. “U.S. Venture Partners combines its proprietary healthcare technology with top-tier industry partners to provide a near-perfect solution for both employees and employers, addressing various issues related to employee healthcare costs. U.S. Venture Partners brings extensive experience in healthcare, public market orientation, and collaboration with growth-stage teams. We are delighted to have their support as we enter the next phase of our company’s development. With U.S. Venture Partners rapidly expanding its teams in Chicago and overseas, we will seek innovative talent to help us break down barriers and fulfill our mission of simplifying healthcare.”

To date, U.S. Venture Partners has completed 480 investments, serving as the lead investor in nearly 129 of them. Between 2004 and 2018, U.S. Venture Partners raised a total of $1.7 billion in capital. Its most recent fundraising round occurred on March 28, 2018, under the fund name U.S. Venture Partners XII, which closed at $206.8 million.

HealthJoy partners with enterprises to provide year-round medical benefits for employees and their families, thereby reducing healthcare costs and administrative burdens. Through an easy-to-use, personalized, and intelligent mobile application, HealthJoy enables seamless access to various employee health data, including claims, medical deductibles, Human Albumin Serum (HAS) status, prescription outcomes, and more.

Jonathan Root, Co-Founder of U.S. Venture Partners and new Board Member at HealthJoy, stated, “HealthJoy is delivering a comprehensive solution that serves a wide range of stakeholders, including employees, their families, employers, and benefits consultants. Moreover, adoption of the HealthJoy platform by clients and employees drives increased benefits for other channel partners, including U.S. Venture Partners, thereby generating significant revenue growth for HealthJoy. We are therefore delighted to support this first-rate team in shaping the future of healthcare.”

HealthJoy, founded in 2014, is a platform that integrates medical guidance with engagement from healthcare professionals. It consolidates online physician consultations, health education, prescription savings, and other cost-containment strategies into an easy-to-use mobile application, empowering employees to make better healthcare decisions. By integrating seamlessly with clients’ existing benefits packages, HealthJoy reduces administrative and benefits costs while enhancing member satisfaction, thereby fundamentally improving the current state of healthcare.

HealthJoy’s mobile application platform integrates features such as medical professionals, health concierge services, prescription cost management, and AI-powered virtual assistants, enabling customers to access their health information via smartphones while helping employers enhance employee benefits and reduce costs.

U.S. Venture Partners (USVP) is a leading Silicon Valley venture capital firm founded in 1981 and headquartered in Menlo Park, California. Over the past three decades, USVP has invested in more than 400 companies, including healthcare firms such as Castlight Health, Inspire Medical, Omada Health, and OncoMed, thereby creating millions of jobs. The USVP team comprises former entrepreneurs, technologists, corporate executives, and finance professionals who provide portfolio companies with strategic guidance on scaling, team building, product development, and business development. The firm focuses on transforming sectors such as cybersecurity, enterprise software, consumer mobile, and e-commerce, while also supporting early-stage healthcare startups.

(Compiled by Wang Shuijing)