CRISPR Therapeutics Secures $38 Million Funding as Berkshire Hathaway Acquires Medical Liability Leader
VCBeat Investment and Financing News Report,6Month13Sun DayDate of Publication, the domestic and international digital health sectors have collectively raised approximately4.36hundred million U.S. dollars, of which approximately 406 million U.S. dollars were raised for overseas projects.
Overview of Overseas Funded Projects
According to VCBeat (WeChat ID: vcbeat), multiple major financing events occurred in both domestic and international digital health sectors during this period. This issue is the overseas edition of the Monthly Financing Report, in which the editor will systematically review overseas funded projects for readers’ detailed consideration.
Gene Editing Company CRISPR Therapeutics Secures $38 Million in Funding,Buffett Acquires Leading Insurance CompanyMedical Libility。
The crown for the hottest overseas financing event was jointly claimed by gene-editing company CRISPR Therapeutics and the “Oracle of Omaha,” Warren Buffett. First, let us examine the advantages that CRISPR Therapeutics holds over its peers.
·CRISPR Therapeutics—Uncovering the Roots of Various Diseases Through Gene Editing Technology
CRISPR Therapeutics is a gene-editing company headquartered in Switzerland. The company is dedicated to developing gene therapies for various diseases through its CRISPR/Cas9 gene-editing platform, and researching treatments for conditions such as cystic fibrosis, blindness, blood disorders, and congenital heart disease.
CRISPR/Cas9 is a revolutionary technology that enables direct and precise gene editing. The company’s multidisciplinary research team, comprising world-class researchers and drug developers, is leveraging this technology to develop therapeutics for a wide range of human diseases. The company’s scientific founder, Emmanuelle Charpentier, who co-developed the CRISPR/Cas9 gene-editing technology, holds patents related to this innovation.
On June 27, 2016, CRISPR Therapeutics announced the completion of a $38 million Series B financing round. To date, the company’s total funding has reached $140 million.
It is reported that in October 2015, CRISPR Therapeutics and Vertex Pharmaceuticals entered into a four-year strategic collaboration agreement to develop gene therapies using CRISPR/Cas9 technology. As part of the agreement, Vertex agreed to provide CRISPR Therapeutics with an upfront cash payment of $75 million and an equity investment of $30 million.
CRISPR Therapeutics’ gene-editing technology can uncover the root causes of various diseases; once these causes are identified, developing therapies becomes significantly less challenging. In an era of rapid technological advancement, any R&D effort that achieves a breakthrough from zero to one has the potential to disrupt an entire field. CRISPR Therapeutics’ novel technology merits this substantial round of financing. Products or technologies that represent such zero-to-one innovations may propel a company to become an industry giant. Another prominent focus in financing is collaboration among established industry leaders.
Medical Liability, established in 1975, is the largest medical professional liability insurance company in New York, with over 40 years of experience in the insurance industry. In New York State,Medical LiabilityWith nearly 16,000 physicians, 4,000 dentists, and dozens of hospitals, its primary business is providing professional liability insurance for physicians, dentists, and healthcare personnel.
On July 19, 2016, Berkshire Hathaway Inc. (BRK.A), under Warren Buffett’s leadership, agreed to acquire Medical Liability, a move that will further strengthen its leading position in the insurance sector dedicated to protecting physicians from litigation.
This transaction is subject to regulatory and customer approvals and is expected to be completed in the third quarter of 2017.
One is a company under the banner of the “Oracle of Omaha,” and the other is a leading enterprise in the insurance sector; their collaboration represents a powerful alliance between two industry giants. We look forward to the new changes this acquisition will bring to the overseas medical insurance landscape. Having discussed the most high-profile financing deal, let us now turn our attention back to the core of the healthcare industry: the doctor-patient relationship.
·DocPlanner—Becoming the Leader in Online Medical Appointment Booking
DocPlanner is an online medical appointment platform based in Poland, Europe, established in January 2016. The platform serves both general patients and healthcare providers, including private physicians, dentists, nutritionists, psychological counselors, as well as clinics of various sizes. Doctors can monitor and respond to patient reviews on the platform, and most importantly, accept patient appointments through it.
DocPlanner also announced that it has reached a merger agreement with its competitor Doctoralia, aiming to become the leader in the online medical appointment sector.
In December 2012, DocPlanner secured $1 million in angel funding. In September 2013, the platform raised $3 million in Series A financing, followed by $10 million in Series B financing in May 2015. In June 2016, DocPlanner obtained $20 million in Series C financing.
DocPlanner is set to establish the world’s largest physician database, demonstrating how technologies in the big data era can deliver substantial value across various sectors, including healthcare. Another U.S.-based digital health startup, ePatientFinder, leverages big data to precisely match clinical trials with patients. Let us take a closer look at what sets this company apart.
·ePatientFinder—Addressing Inefficiencies in Clinical Trial Recruitment
Headquartered in Austin, USA, ePatientFinder is a digital health startup. The company leverages existing electronic health records to help physicians conducting clinical trials match with suitable patients.
ePatientFinder’s primary role is to provide physicians with more life-changing clinical trial opportunities by matching them with patients. It innovatively establishes a clinical trial facilitation platform that closely connects pharmaceutical companies, medical device manufacturers, and new drug research institutions with clinics and hospitals to identify suitable patients for clinical trials.
The company secured $575,000 in seed funding in February 2014 and raised $2.58 million in its Series A round in February 2015. In June 2016, ePatientFinder announced the completion of an $8.2 million Series B financing round, led by a consortium of technology investors. To date, the company has raised over $11 million in total funding.
Following the completion of this funding round, ePatientFinder plans to further expand its clinical trial patient referral network and service provider referral network, leveraging technological solutions to address inefficiencies in the clinical trial recruitment process.
Integrating big data technology with the digital health sector can address numerous challenges, representing an advancement at the level of new medical technologies. Amid the rapid development of the digital health landscape, some companies are also focusing on initiatives centered around humanistic care, aiming to enable more people to lead healthier lives.
·Jiff—Safeguarding the Physical and Mental Well-being of Corporate Employees: A Win-Win Solution
Jiff, founded in 2011, is a technology company dedicated to providing employers with employee health management platforms. Its platform collects employee health data through wearable devices and associated mobile applications, generating insights through data analysis. By implementing Jiff’s health management solutions, employees’ health status can be improved, while healthcare expenditures are significantly reduced.
In December 2010, Jiff secured $1 million in seed funding. In March 2012, the company raised $7.5 million in Series A financing, followed by an $18.3 million Series B round led by Venrock in September 2014. In May 2015 and June 2016, Jiff raised $41 million in Series C funding. Over the six-year period, Jiff accumulated a total of $68 million in financing, with investors including Rosemark Capital, GE Ventures, Aeris Capital, and Aberdare Ventures.
Jiff’s project delivers multiple benefits by helping enterprises manage employee health through proactive prevention and intervention before illness occurs, creating value for both companies and employees. Another U.S. company’s initiative is also dedicated to “preventive care,” focusing on the prevention and management of diabetes.
·Solera Health—Specializing in Diabetes Prevention Programs
Headquartered in Phoenix, Arizona, Solera Health provides a multi-stakeholder platform serving patients, providers, and others, with the aim of facilitating broader access to the benefits of the Centers for Disease Control and Prevention’s (CDC) National Diabetes Prevention Program (DPP). The company’s technology enables seamless integration with the DPP, assists clients in managing payment and reimbursement processes, and incentivizes all stakeholders to participate in disease prevention programs.
SoleraHealth raised $3 million in Series A financing in November 2015 and secured an additional $4 million in Series A funding in June 2016. The company’s primary investors include BlueCross BlueShield Venture Partners, Sandbox Industries, and SJF Ventures, with the first two participating in both financing rounds.
The success of this financing round will help it better connect service providers, payers, and patients, integrating them into a diabetes prevention and management platform.
In an era where public health awareness is on the rise, projects focused on the prevention and management of chronic diseases have gained widespread popularity. Yet one company has chosen to focus on a seemingly minor task that often goes unnoticed: blood draws.
·IgGBO—A Third-Party Platform for At-Home Blood Draw Services
Iggbo, a tech startup headquartered in Richmond, the capital of Virginia, is designed to meet users’ blood draw needs.
On the Iggbo app, physicians enter the patient’s basic information, requested test items, and specific blood collection location, then select the laboratory and phlebotomist for the blood test. The platform subsequently processes the physician’s order and dispatches a phlebotomist to the patient’s home or other designated location for sample collection. The blood samples are then sent to the selected laboratory for testing, and the results are reported back to the physician.
According to VCBeat (WeChat ID: vcbeat), Iggbo secured $6 million in seed funding in January 2016. In June 2016, Iggbo raised $13 million in Series A financing, with Heritage Group as the investing institution.
IgGBO will leverage the new funding to further develop its proprietary technologies and explore laboratory testing modalities beyond blood tests.
Iggbo excels at identifying subtle details in the healthcare process and developing projects around them. For instance, it enables patients to complete blood draws without leaving home, thereby eliminating the hassle of queuing. Considering issues from the user’s perspective is one of the most fundamental characteristics of a good product. Another project transforms the tedious process of physical therapy into engaging motion-sensing games, incorporating entertainment elements to encourage users to actively participate in their physical therapy.
·Reflexion—Making Physical Therapy More Engaging
Reflexion Health, headquartered in San Diego, has integrated its developed physical therapy training programs with Microsoft’s Kinect motion-sensing gaming device. Leveraging the Windows operating system, it enables users to undergo physical therapy in a game-like manner. This approach transforms traditional medical treatment models by providing meaningful, patient-centered care.
Reflexion raised $4.25 million in seed funding in October 2012 and secured $7.5 million in Series A financing in March 2014. In June 2016, Reflexion obtained $18 million in Series B funding.
The company stated that the newly raised funds will be primarily allocated to three areas: further refining its product, Vera, to maximize its clinical value; expanding its digital health product portfolio; and penetrating the U.S. healthcare system to broaden its market reach.
Reflexion turns the tedious process of physical therapy into an engaging experience. Its simple premise effectively addresses patients’ pain points. Both in China and abroad, there is a greater need for projects that prioritize thoughtful product development. The next project is related to the Internet of Things (IoT) technology, which has gained significant traction in recent years.
·eDevice—Mobile Healthcare + Data Transmission
eDevice, established in January 2002, is a service provider offering remote end-to-end connectivity solutions for medical devices and equipment. Its products and services include the production and sales of mobile healthcare communication devices, remote communication services, and remote monitoring and management platforms.
According to VCBeat (WeChat ID: vcbeat), in June 2016, China’s Andon Health acquired eDevice for €93.88 million. This acquisition was significant in further solidifying Andon Health’s R&D strengths and better expanding its overseas markets. It not only facilitates product and business collaborations with major high-quality international enterprises such as Medtronic, Philips, and Honeywell, but also lays an important foundation for the company to expand its sales channels, enhance brand influence, and accelerate its internationalization.
Andon Health has turned its attention to overseas markets, leveraging the existing customer channels and business resources of both companies to deepen customer penetration and extend the industrial chain, thereby expanding overall business scale and improving Andon Health’s profitability. Social development has narrowed the distance between countries and brought modern lifestyles to people. When discussing modern life, one term inevitably comes up: weight loss. Recently, a U.S. startup in the healthcare sector secured $8.5 million in its first round of financing; its product aims to prevent chronic diseases by addressing obesity.
·FareWell—Focusing on Healthy Eating, Caring for a Healthy Lifestyle
FareWell is headquartered in San Francisco, and its products are designed to prevent chronic diseases by addressing obesity.
FareWell’s product portfolio includes digital tools, health coaches, and dietary plans, all of which encourage users to adopt healthy eating habits, with a particular emphasis on plant-based foods. Users engage in real-time interactions with their health coaches via video or voice calls every two weeks, facilitating in-depth discussions about their health status and any changes.
On the company’s app, users can watch video cooking tutorials, view shopping lists, and access other culinary educational content. FareWell aims to boost user engagement and loyalty through gamification mechanisms such as phased goals, SMS reminders, and rewards.
In June 2016, FareWell secured a total of $8.5 million in investment from independent investors, including David Perry, its Chairman and Co-founder.
In an era that prioritizes health management, not only are individuals expected to manage their own health status, but many companies have also begun to place greater emphasis on employee well-being. Recently, a U.S.-based telemedicine company acquired a firm that develops mobile applications for employee health services. Let us explore the reasons behind this move.
·HealthiestYou—Committed to Developing an Employee Health Services App
Teladoc, a telemedicine company headquartered in Louisville, Texas, recently acquired HealthiestYou. Headquartered in Scottsdale, Arizona, HealthiestYou has developed an app designed for employee health services.
The app developed by HealthiestYou provides users with a directory of service providers based on location information, and allows them to look up ratings, reviews, and background information on these providers. Currently, the app can compare prices for over 5,000 medications from more than 100,000 pharmaceutical companies, and offers customizable personalized reminders to help users obtain optimal care.
In November 2015, HealthiestYou secured $30 million in funding from Frontier Capital; in June 2016, Teladoc acquired HealthiestYou for $125 million.
Teladoc stated in a press release that the acquisition would help the company expand its market by serving more small and medium-sized enterprises through telehealth.
Recently, Progyny, a U.S.-based digital health company focused on fertility services, secured $15 million in Series B financing. Among the many assisted reproductive technology (ART) applications, what unique advantages does Progyny possess that have attracted this investment?
· Progyny – Product has received FDA clearance
Progyny, a digital health company headquartered in New York, USA, primarily focuses on in vitro fertilization and fertility.
ProgynyMobile is Progyny’s latest product, offering access to Eeva, the first and only FDA-cleared embryo viability testing system. ProgynyMobile provides users with goal-oriented services nearby. For example, after a user selects egg freezing services, the app guides them step by step to make optimal decisions by comparing prices, distances, success rates, and other frequently asked questions.
Progyny is developing an in-app algorithm to predict the success rate of in vitro fertilization (IVF), with a launch expected later this year.
Progyny completed two rounds of Series A financing in February 2012, raising a total of $26.9 million. In July 2016, Progyny closed its final Series B round with $15 million in funding, bringing the total Series B amount to $40.53 million. To date, the company has raised a cumulative total of $67.43 million.
During this period, the majority of funded projects were based in the United States, while the next project originated from Delft, Netherlands, focusing on helping users address sleep apnea by modifying sleeping positions.
·NightBalance—Smart hardware helps users avoid sleep apnea
NightBalance is headquartered in Delft, the Netherlands, and its products are primarily designed to help users prevent sleep apnea.
NightBalance’s SPT sleep position trainer is compact and lightweight, allowing it to be easily worn on the chest. It dynamically monitors sleep posture throughout the night and delivers gentle vibrations to remind patients to change their habit of prolonged supine sleeping.
The company has announced the completion of a $13.9 million Series B financing round, led by INKEF Capital and Gilde Healthcare Partners. NightBalance stated that it will use the funds to further promote its sleep position trainer and enter the U.S. market.
NightBalance’s smart hardware is designed for obstructive sleep apnea syndrome, ensuring sleep safety with minimal disruption to sleep. Meanwhile, another company is dedicated to building a doctor-patient communication platform for patients with musculoskeletal disorders.
·Force Therapeutics—Helping patients with musculoskeletal injuries undergo online rehabilitation therapy
Force Therapeutics is headquartered in New York and primarily helps patients recover through an online platform.
On Force Therapeutics, the platform provides patients with the various devices they need to facilitate better recovery. Additionally, it offers features such as video guidance, physician-patient communication, data collection, and real-time tracking, ensuring that accurate information is delivered in the right way at the right time, thereby bridging the gap between physicians and patients.
Force Therapeutics has developed web-based and mobile applications, with its platform connecting patients to service providers such as surgeons, internists, and therapists.
In February 2015, Force Therapeutics secured $2.2 million in funding. In July 2015, the company raised an additional $2.6 million.
In an era where healthcare demands precision, related products must also precisely address user pain points and grasp market needs to forge ahead in the wave of entrepreneurship.
That concludes this issue of the Overseas Edition of the Monthly Financing Report. Thank you for reading. In the next Domestic Edition, we will provide a comprehensive review and analysis of funded projects within China’s digital health sector. We look forward to your readership then.
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