First Stop Health Secures $6.5M Series A Funding to Expand Telemedicine Services and Files for IPO
VCBeat (WeChat Official Account: vcbeat) has learned that remote virtual care company First Stop Health announced on January 12, 2019, that it had secured an additional $6.5 million in Series A financing. This round was led by Joe Mansueto, Founder and CEO of Morningstar, and Rich Gallun, Co-founder and CEO of bswift. The investment will continue to support First Stop Health in expanding its telemedicine services.
It is reported that since its establishment in 2011, First Stop Health has raised a total of $14.2 million. Prior to this, First Stop Health had completed multiple rounds of financing. In 2014, the angel round brought $22 million to the company. Subsequently, First Stop Health secured $21 million in seed funding and $16 million in venture capital financing in 2016 and 2017, respectively. On January 9, 2018, the company obtained an additional $650,000 in convertible notes.
The company stated that the financing will be used to continue developing its telemedicine access business.
First Stop Health Official Website Page
First Stop Health’s online platform offers 24/7 telephone and virtual health consultations, aiming to address the dual challenges of difficult access and high costs associated with healthcare in the United States by providing patients with prompt, convenient, and affordable medical services. The platform is user-friendly and accessible anytime via desktop computers, tablets, or smartphones, catering to both children and adults.
However, these services are primarily intended for non-urgent situations; in exceptional cases, patients will still be referred by the platform to primary care physicians or emergency care providers for treatment.
“Rapid growth in annual revenue and this investment have brought us one step closer to our goal of improving patients’ healthcare experience,” said Patrick Spain, the company’s co-founder, in a statement.
Co-founder Mark Friedman stated, “We provide a seamless and convenient service experience, enabling customers to access care within minutes—a model that has already been widely adopted by a large customer base. This unique membership experience sets First Stop Health apart.”
Telemedicine is one of the most well-known applications of digital health. However, to date, only Teladoc is publicly listed in Western markets. In recent years, a collaborative operational model between payment platforms and telemedicine companies has emerged in the industry. Last year, the mobile analytics firm App Annie released a list of the most frequently downloaded apps, which included American Well, Doctor on Demand, Teladoc, MDLive, and HealthTap.
Rich Gallun is a seed-stage investor with extensive investment experience in the broad healthcare sector. He is also the co-founder and CEO of bswift. In addition to First Stop Health, Rich Gallun has invested in Peerfit, a broad healthcare data company that collaborates with insurance enterprises.
Joe Mansueto is a renowned American entrepreneur who founded Morningstar in 1984 and serves as its Chairman and CEO. Under his leadership, the company has received numerous awards. Additionally, he has led his team in investing in multiple companies, including Viewpoint, Wedeliver, Built In, Tovala, and ClostraBio.