Carrot Secures $25 Million in New Funding to Advance Digital Smoking Cessation Program Pivot™

On October 30, 2018, VCBeat (WeChat ID: VCbeat) learned from foreign media that digital health company Carrot had completed a new round of financing amounting to $25 million. This round was led by JJDC (Johnson & Johnson Innovation), with participation from New York Life Ventures and existing investors Khosla Ventures, Marc Benioff, Dr. David S. Utley, founder of Carrot, and R7 Partners. An investor from JJDC will join Carrot’s board of directors.

Image from Carrot’s official website

Carrot will utilize this funding to complete the commercialization of its Pivot™ smoking cessation program. The Pivot technology platform aims to fundamentally transform the population served and the tools used for smoking cessation. Pivot consists of four components: an FDA-cleared carbon monoxide (CO) breath sensor that detects CO levels—a toxin found in cigarette smoke—and visually presents data to users via a mobile app, enabling deeper insights into their smoking behaviors; a personal dashboard that displays metrics such as time and money spent on smoking, creating a feedback loop that helps participants monitor changes in their smoking habits in real time; customized, scientifically validated curricula driven by the Public Health Service Clinical Practice Guideline for Treating Tobacco Use and Dependence, with Pivot tailoring content to individual user needs and cessation plans; and personalized coaching, whereby Pivot users receive one-on-one support from dedicated, cessation-trained coaches who employ techniques such as motivational interviewing and appreciative inquiry, while actively engaging with users and providing recommendations throughout their quit journey.

In the United States, smoking causes up to 500,000 deaths annually, while globally this figure reaches 6 million. Smoking is a leading cause of preventable diseases and deaths worldwide.

Carrot’s mission is to save millions of lives by providing smoking cessation solutions applicable to the 40 million smokers in the United States and up to one billion smokers worldwide. According to the World Health Organization (WHO), the economic cost of smoking accounts for 2% of global GDP, with healthcare costs and productivity losses amounting to $1.4 trillion. Carrot initially partnered with companies that offer insurance and health plans to their employees, leveraging Pivot to help these employees and members quit smoking. With its innovative approach and positive user feedback, the Pivot smoking cessation program has achieved a success rate many times higher than the national average for employer-sponsored smoking cessation programs in the United States.

Utley, CEO, Founder, and President of Carrot, stated, “Quitting smoking significantly reduces the risk of developing smoking-related diseases, but successful cessation requires a multidisciplinary approach. Johnson & Johnson possesses strong expertise across its medical devices, consumer health, wellness, and pharmaceutical sectors. We are honored that JJDC has led this round of financing, and we believe that addressing global smoking issues demands a coordinated healthcare approach. Support from New York Life Ventures and existing investors will further propel us in fulfilling our mission to help millions of people quit smoking.”

Tim Del Bello, Investment Director at New York Life Ventures, stated, “Carrot is a prime example of innovation at the intersection of digital health and life insurance. This technology has the potential to significantly shape the future development of the life insurance industry.”

Carrot is a digital health company based in Redwood City, California, dedicated to helping millions of people quit smoking by leveraging mobile technology, behavioral science, and clinical expertise.