Livongo Health Secures $44.5 Million in Additional Funding to Expand Chronic Disease Management Platform

Livongo Health, a digital health company specializing in diabetes management, recently secured $44.5 million in financing. The investors in this round included Merck Global Health Innovation Fund, Cowen Private Investments, Sapphire Ventures, Zaffre Investments, and Wanxiang America Corporation. Following this round, Livongo Health’s total funding has reached $79.5 million.

Leveraging Cloud Technology to Build an Advanced Platform for Chronic Disease Health Management

Livongo Health, founded in 2014, is a digital health company equipped with patented technologies and a specialized medical team. By integrating its professional resources with cloud technology, Livongo Health empowers patients with diabetes and other chronic conditions to manage their health more proactively and effectively. The company’s ultimate goal is to establish itself as an advanced platform for chronic disease management, thereby helping numerous patients gain more time to enjoy life. Its founder is Glen Tullman, former CEO of Allscripts. Even before establishing Livongo Health, Tullman was already a successful entrepreneur. As a co-founder of 7wire Ventures, he demonstrated considerable investment acumen, backing multiple successful enterprises in the healthcare and education sectors, such as Digedu. Tullman first entered the field of diabetes when his son was diagnosed with pediatric diabetes at the age of seven. Later, his mother’s diagnosis with type 2 diabetes further exposed him to the broader challenges and complexities within diabetes care.

A few years later, Tullman met a researcher who was developing a blood glucose meter with an embedded 4G chip. “At that time, the device had not yet received FDA clearance, so we had to scramble to secure approval,” Tullman said. “Once the product obtained FDA clearance, we realized that the company could develop a blood glucose meter offering a superior user experience—one that would not only help users maintain their health but also ensure their safety. The combination of technical support and a deep understanding of diabetes has gradually strengthened Livongo Health.”

In Touch Smart Glucose Meter Assists Users in Health Management

Livongo Health’s product, named Livongo for Health, comprises a Wi-Fi-enabled color-screen smart blood glucose meter, an intelligent cloud-based system, and a remote medical team. The blood glucose meter, called In Touch, serves not only as a smart glucometer but also as a pedometer. Its connectivity feature allows users to easily upload data to the cloud. Additionally, In Touch offers trend monitoring and text messaging capabilities. The trend monitoring function enables users to review their blood glucose readings over the past 90 days, helping patients understand the progression of their condition. The text messaging feature allows each patient enrolled in Livongo Health’s diabetes management program to select a health coach tailored to their needs for personalized guidance. Patients can consult their health coaches and receive advice via the text messaging function. The company provides users with unlimited free blood glucose test strips.

The financing proceeds will be used to expand the trial user base and develop new product features.

The proceeds from this financing round will be used to cover the costs of providing products to trial users. The number of Livongo Health’s product users has increased from 5,000 last year to 10,000 currently, and the company aims to reach 40,000 trial users by the end of this year. Additionally, the team will leverage these funds to add new features to its product, such as blood pressure monitoring and weight measurement.

Partnered with 50+ leading companies to continuously strengthen our team

In terms of partnerships, Livongo Health signed a cooperation agreement with Lowe’s, a major U.S. home improvement supply chain retailer, making Lowe’s one of Livongo Health’s key enterprise clients. Initially, Lowe’s offered this diabetes management product to its employees with diabetes and their covered family members in North Carolina, South Carolina, and Alabama. Following positive reception in these three states, Lowe’s expanded the benefit to all its employees nationwide and to plan sponsors. Livongo Health has contracted with more than 50 large corporate clients, including Quicken Loans, Office Depot, OfficeMax, and SC Johnson. The company has also established partnerships with payers such as Humana and Cigna. Last year, Livongo Health raised $30 million in funding, stating at the time that it would use the proceeds to pursue collaborations with self-insured employers that bear the cost of their employees’ medical expenses.

In September 2015, Livongo Health hired Jennifer Schneider, former Chief Medical Officer of Castlight Health, to serve as its Chief Medical Officer. Schneider was responsible for the company’s product development, clinical analytics, and clinical research.

Author: Deng Xueyuan

Editor: Li Simeng


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