45 Digital Health Startups Raise Nearly $600 Million in Q3 2016

MobiHealthNews tracked financing activities of digital health companies in the third quarter of 2016, reporting that total funding for Q3 reached nearly $600 million. Apart from Thalmic Labs, which raised over $100 million, the other 45 companies secured relatively smaller amounts: only seven companies raised more than $20 million, while the remainder raised less than $10 million each. To facilitate analysis, MobiHealthNews excluded investments in joint ventures such as Verily and Sanofi’s OnDuo, as well as grant-funded investments, and instead compiled a review of financing activities for 45 digital health companies during Q3. The companies are listed in ascending order by funding amount and span dozens of sectors. This article was compiled and edited by VCBeat (WeChat ID: vcbeat).

Thalmic Labs：It is a Canadian wearable device technology company that developed the connectable armband device, Myo. In its Series B financing round, it raised $120 million, led by Intel Capital, with participation from Amazon Alexa Fund and Fidelity Investments Canada. The funds will be used to support the expansion of the company’s product line and to hire employees to strengthen Thalmic Labs’ new team in San Francisco.

Accolade Health：Accolade, a digital health company that provides services to employers, health plans, and health systems, raised $70 million in its latest Series E financing round, led by Andreessen Horowitz with participation from investors including Madrona Venture Group. Accolade plans to use the funds to expand its technology platform, R&D, sales, and marketing activities.

ClearCare：is a developer of back-end software for home care, having secured $60 million in financing led by the global investment firm Battery Ventures. In a written statement, the company indicated that it will leverage this investment to pursue new strategic platforms.

 Chrono Therapeutics：Headquartered in Hayward, California, the company is developing an app-based device that integrates with nicotine patch sensors. It raised $47.6 million in its Series B financing round, led by Kaiser Permanente Ventures. The funds will be used to further advance the company’s digital therapeutic platform.

Endotronix：Based in Chicago, the company has developed a device that manages heart failure in patient users and remotely monitors cardiac patients. In its latest funding round, Endotronix raised $32 million from investors including BioVentures, SV Life Sciences, Lumira Capital, Aperture Venture Partners, OSF Ventures, and an unnamed investor.

PillPack：is a virtual pharmacy company based in Manchester, New Hampshire, which has secured $31.1 million in investment. According to reports, Boston-based Astral Capital joined as a new investor in this financing round, while previous investors include Accomplice, Accel Partners, Charles River Ventures, and Sherpa Capital.

Zillion：Headquartered in Norwalk, Connecticut, the company has established a cloud-based patient engagement platform and raised $28 million in its Series C funding round. Zillion will use these funds to expand its customer base, increase its sales team, and invest in marketing.

Docent Health：Based in Boston, the company secured $15 million in a new round of financing, with investment from Bessemer Venture Partners, New Enterprise Associates (NEA), and Maverick Ventures, all of which had previously participated in its seed funding round in January. The startup initially grew under the umbrella of Oxeon, a medical investment holding company, and combines mobile software tools with trained human conversationalists to enhance the consumer experience at its partner hospitals.

Curology：Based in San Diego, California, the company offers prescription skincare product information and questionnaires via smartphone. It raised $15 million in its Series B financing round, led by Advance Vixeid Partners, with participation from prior investors Sherpa Capital and Forerunner Ventures. The funds will be used to expand Curology’s products and services: the company has developed an end-to-end online solution that enables users to remotely share photos of their skin with licensed medical professionals engaged by Curology.

Caremerge：Provides care coordination software services for users’ assisted living facilities. The company, which has raised $14 million, is headquartered in Chicago. This funding round was led by Insight Venture Partners, with participation from Grażyna Kulczyk, Cambia Health Solutions, Ziegler LinkAge Longevity Fund, GE Ventures, and Arsenal Venture Partners.

Sleep apnea device developer  NightBalance ：Developed a sleep apnea device and raised $13.9 million (€12.5 million) in its Series B financing round, with investment from NKEF Capital and Gilde Healthcare Partners. The Netherlands-based company will use the funds to further optimize its Sleep Position Trainer (SPT) device and prepare for entry into the U.S. market.

Akili Interactive Labs：Akili is a digital therapeutics company that announced the completion of an $11.9 million Series B financing round, which brought in new investors. The company’s total funding has now reached $42.4 million. Merck Ventures’ Dutch subsidiary, known as M Ventures in the United States and Canada, and Amgen both participated in this round. Existing investors include Pfizer and Shire Pharmaceuticals. This means Akili has now established relationships with four major biopharmaceutical companies or their investment arms.

Big Health：A UK-based digital health startup behind the sleep app Sleepio has completed a $12 million financing round, led by Octopus Ventures, with participation from Kaiser Permanente Ventures, Omada Health, Index Ventures, and JamJar Investments. The company’s app is not offered directly to consumers; instead, it sells its sleep wellness programs and app to employers.

Avizia：Based in Reston, Virginia, the telemedicine company raised $11 million in its Series A financing round, bringing its total funding to $19.5 million. The round was led by Blue Heron Capital, with participation from Lavrock Ventures, NextGen Venture Partners, Middleland Capital, Waterline Capital, and Blu Ventures.

Azalea Health：Azalea Health is a medical IT software company based in Atlanta, Georgia, with its product focus on rural healthcare practices and mobile tools. The company secured $10.5 million in Series B financing, led by Kayne Anderson Capital Advisors and participated in by Intersouth Partners, bringing its total funding to $12.5 million to date.

Lifesum：Headquartered in Stockholm, it is a digital health company. In the third quarter, it closed a $10 million financing round led by Nokia Growth Partners, with participation from Draper Esprit, Bauer Media Group, and SparkLabs Global Ventures. The Swedish medical app developer will use these funds to expand its markets in Europe and the United States.

OMsignal：is a Montreal-based smart apparel manufacturer that has secured $10 million in financing, led by Relay Ventures and followed by its existing and new investors, including MAS Holdings, Bessemer Venture Partners, and Techstars Ventures. The funds will be used to establish a decentralized network for its latest product, OMbra, and to further advance the company’s smart textiles business (its smart running shirt, currently under development, has not yet been released).

Glooko & Diasend：As two diabetes management companies announced their merger, the newly formed entity also secured $8 million in equity financing, led by global venture capital firm Canaan Partners, with participation from Social Capital, Samsung Ventures, and Yogen Dalal.

 Kry：is a Swedish digital health startup whose service connects professional healthcare providers with patients via video. The company has completed its seed funding round, raising $6.8 million (€6.1 million), with participation from Index Ventures (London and San Francisco), Creandum (Stockholm), and Project A Ventures (Berlin).

Gobiquity：GoCheck Kids, a vision screening app designed for children, secured $6 million in its latest funding round from Interwest Partners. Previously known as iCheck Health, the company had raised $750,000 in seed funding from Interwest.

Adherium：Adherium, a Melbourne-based manufacturer of connected air filters, has raised A$8 million (US$5.9 million) from Fidelity Investments’ private equity fund. Listed in Australia, Adherium agreed to issue 16 million shares to Fidelity at A$0.50 per share under the financing arrangement, giving the global asset management firm a 10% stake in the company.

Check-Cap：Based in Israel, Check-Cap is a clinical-stage medical diagnostics company currently developing an ingestible capsule sensor for colorectal cancer screening. The company has secured a $5.9 million financing agreement with a healthcare firm. The product developed by Check-Cap will not be used for commercial purposes but will instead support the clinical development of its colorectal cancer screening system.

MDSave：Headquartered in Nashville, Tennessee, the company is a leading advocate for healthcare transparency and has secured $5 million in investment from Cambia Health, a major holding company that offers numerous large-scale insurance plans.

Happify：An online mental health assessment platform has been established, accessible to users via its app and website. The New York-based company has completed a new round of $5 million in financing, which will be used to expand its workforce and invest in the development of wellness programs. Additionally, the funds will support the establishment of Happify Health, a newly formed subsidiary of Happify.

Nomad Health：Based in New York, the company has built an online marketplace connecting freelance clinicians and raised $4 million in its Series A financing round. The round was led by First Round Capital and RRE Ventures, with participation from 406 Ventures. The funds will be used to promote its system nationwide, which helps healthcare organizations find clinicians to fill temporary staffing gaps.

Bloomlife：Based in San Francisco, the company raised $4 million for its wearable device that connects to smartphones to track pregnant women’s gestational status. To date, its total funding has reached $6 million. This round was led by Marc Benioff and Efficient Capacity.

Roadtohealth：Quealth, a health improvement app, has secured over $4 million in investment from the global insurance company Reinsurance Group of America (RGA). As part of this deal, RGA has acquired a small equity stake in RoadtoHealth. The partnership between the two parties will facilitate multi-platform distribution for Quealth. In its statement, RGA indicated that the $4 million represents only its initial investment, with further funding contingent upon RoadtoHealth’s performance.

 DreaMed Diabetes：Based in Israel, the company secured a total of $3.3 million in funding from Norma Investments, Russian businessman Roman Abramovich, and an undisclosed angel investor. The funds will be primarily used to further develop DreaMed’s Adviso, a decision-support software developed by the company that can be integrated into partners’ diabetes management platforms.

Beyond Verbal：Based in Israel, the company can determine users’ emotions and mental health status by analyzing their speech. It has completed a new round of financing, raising $3.3 million. The round was led by KuangChi Science, controlled by a Hong Kong investment firm, with participation from Winnovation and Singulariteam. According to The Wall Street Journal, this latest injection brings Beyond Verbal’s total Series A funding to over $7 million.

Health2Sync：is a Taiwan-based diabetes management startup that secured $3 million in its latest funding round, led by WI Harper Group, with participation from herubic Ventures, iSeed Ventures, and SparkLabs Global Ventures. Most of the investors are from Silicon Valley and Asia. The funds will be used to launch its diabetes management program in Taiwan and expand into other markets such as Japan.

Klara：is a healthcare communications company that bills itself as the “professional WhatsApp” of the medical industry. It has secured $2 million in financing, led by Lerer Hippeau and Project A Ventures, with participation from German VC Atlantic Labs. The newly injected capital will be used to expand its communication platform that connects patients with physicians and facilitates centralized patient engagement.

DoseMe：DoseMe is an Australian digital health company that has developed and built a precision dosing tool platform for clinicians. The company raised $2.6 million in its Series A funding round, with investors including Greg Spurgin and Gary Cunningham, founders of a U.S.-based orthopedic physical therapy company. Additionally, Spurgin will join the DoseMe board of directors, working alongside seed-round investor Steve Baxter, DoseMe CEO Charles Cornish, and founder Dr. Robert McLeay.

Force Therapeutics：Based in New York, the company completed a $2.6 million financing round, according to filings with the U.S. Securities and Exchange Commission (SEC). To date, its total funding has reached $4.8 million. Initial investors in Force Therapeutics include Thomas Layton, former CEO of OpenTable; the former CEO of Revolution Health; Ticketmaster’s John Pleasants; and Randall Winn, Managing Member of FiveW Capital. The company has developed a mobile- and web-based platform that enables patients undergoing musculoskeletal injury rehabilitation to adhere to their physicians’ treatment instructions.

Koko：Leveraging artificial intelligence to deliver cognitive therapy to diverse populations, the New York-based company has completed a $2.5 million Series A financing round, led by Omidyar Network and Union Square Ventures. The company also announced the launch of KokoBot, which will be available on Facebook Messenger, Telegram, and Kik, offering users a novel experience.

Garwood Medical：A patent has been filed for its wound healing system. According to filings with the U.S. Securities and Exchange Commission, the company has secured $2 million in Series A financing, with the investor remaining undisclosed. Garwoo’s patent application describes a method for transmitting pulsed current to the bandage via an RF transceiver, while also enabling wireless remote monitoring of wound healing through connectivity with mobile devices.

3Derm：Based in Connecticut, the company specializes in teledermatology. Its services enable patients and non-dermatologists to capture 3D images of the skin. The company has raised $1.66 million in funding from undisclosed investors.

 iBeat：Headquartered in San Francisco, the company is a manufacturer of cardiac monitoring wearables that competes directly with heart and PERS device providers. It has completed a $1.5 million seed financing round, led by Maveron, Subtraction Capital, and Correlation Ventures, with participation from Ali, Hardi Partovi, Russell Okung, Henry Kravis, Band of Angels, and Ammunition Group.

Sansoro Health：Based in Minneapolis, this healthcare IT company specializes in software, digital health tools, and electronic health record (EHR) interoperability. It secured $1.2 million in a new round of financing led by Healthy Ventures, with participation from Treehouse Ventures and several angel investors. Healthy Ventures is an investment firm that focuses on collaborating with high-tech healthcare companies, including HealthCrowd and PokitDok.

QueueDr：Based in Norwalk, Connecticut, the company uses text messaging to help physicians manage last-minute cancellations and has secured $1.2 million in investment from Rolling Hill Ventures. Patrick Randolph, CEO of QueueDr, stated that for this three-year-old company, this funding represents its first round following the seed stage and will be used to accelerate growth. Its seed investors included Launchpad Digital Health and 500 Startups.

 Workit Health：Developed a digital counseling program targeting substance abuse, the company raised $1.1 million in its seed round, led by Montage Ventures and Lux Capital. Headquartered in Oakland, California, the company will use the funds to expand its existing legal team, hire counselors, software engineers, and sales representatives, in preparation for launching its direct-to-consumer service by year-end.

Intellirod Spine：It is a sensor-based spinal implant company located in Akron, Ohio. The company has completed a new round of financing amounting to $1 million, with investors including Queen City Angel First Fund V, JumpStart, Kentucky Seed Capital Fund, and the City of Akron, Ohio.

Medaxion：Based in Nashville, Tennessee, a manufacturer of mobile electronic medical record (EMR) products for anesthesiologists has secured $950,000 in funding, with investors not yet disclosed. To date, the company’s total funding has reached at least $7 million.

MedCrypt：is a medical device software security company that provides cybersecurity services for connected device companies. The company completed a $750,000 seed funding round, with investment from Safeguard Science and angel investors.

RubiconMD：The company, based in New York, has built a digital consultation platform for physicians and announced that it secured a $750,000 innovation fund from the California HealthCare Foundation, which supports emerging technologies in the healthcare sector.

MedMinder：Based in Needham, Massachusetts, the company has developed smart pills capable of connecting with intracellular structures and secured $500,000 in investment from undisclosed investors. As a company that has long been dedicated to the field of smart medications, MedMinder’s total funding to date amounts to only $2.3 million. Eran Shavelsky, Founder and CEO, revealed to MobiHealthNews that the new capital will be used to support the company’s recent expansion into the mail-order prescription drug market.