Livongo Raises $30 Million for Its Innovative Diabetes Management Platform and Files IPO Prospectus

Globally, countless digital health companies have emerged to help patients with diabetes manage their health, and the market is flooded with a wide variety of glucose meters. This reflects, to some extent, the intense competition among digital health firms in the diabetes management sector. Consequently, it is no easy feat for any startup to capture the interest of investors in this field. Yet Livongo managed to effortlessly attract attention from multiple investment institutions right from its inception. What exactly was the reason behind this?

★ Building an Advanced Platform for Chronic Disease Health Management
Livongo, announced as established on September 10, 2014, is a digital health company equipped with patented technologies and a specialized medical team. By integrating its professional resources with cloud technology, Livongo helps patients with diabetes and other chronic conditions manage their health more proactively and effectively. Its current operational philosophy consists of just three simple principles:

1) Patients with diabetes want to spend less time managing their health;
2) When treating diabetes, physicians seek more timely data to provide patients with more effective guidance;
3) Healthcare service providers, self-insured companies responsible for paying employees' medical expenses, and all patients who hope to achieve better outcomes at lower costs.

In summary, Livongo’s ultimate goal is to position itself as an advanced platform for chronic disease health management, thereby helping numerous patients with chronic conditions gain more time to enjoy life.

AlthoughLivongo has been in existence for less than a year., but it has mastered advanced technologies and accumulated extensive experience in diabetes health management, largely thanks to its acquisition of EosHealth.

Long before smartphones hit the market, the company was already building an online platform to leverage basic mobile phones for diabetes management. Over more than a decade of operations, EosHealth has remained focused on diabetes health management, developing more than a dozen patented technologies.

It was precisely EosHealth’s advanced technologies and extensive experience that empowered Livongo, giving it the confidence to select diabetes health management as the breakthrough point for building a cutting-edge chronic disease management platform amidst intense competition. This foundation also enabled Livongo to launch its FDA-cleared wireless glucose meter, InTouch, and the first diabetes health management program recognized by the American Association of Diabetes Educators right from its inception.

Let’s take a closer look at the features and benefits of InTouch, as well as this diabetes health management program favored by authoritative institutions.

★Five Special Features of InTouch
Unlike conventional wireless blood glucose meters, InTouch not only measures blood glucose levels but also automatically uploads data to a cloud storage service center.

Of course, it also possesses other special features:
Team A Functionality: This feature allows users to specify who has permission to access the data they upload to InTouch.
B. Trend Monitoring Function: Allows users to review their blood glucose levels over the past 90 days, helping patients understand the development trends of their condition.
C. SMS Feature: Every patient enrolled in Livongo’s diabetes health management program can select a health coach who meets their specific needs to guide them in managing their health. Patients can use the “SMS feature” to consult their health coach and receive guidance.
D Activity Log Feature: Users can use this feature to record their daily step count.
E-Communication Function: InTouch features a built-in SIM card that can automatically contact family members, friends, or 911 in emergencies to request rescue assistance.
★ User-Friendly Interface Design
Compared with other similar products, the biggest advantage of InTouch is its highly user-friendly design:
1) Appearance,InTouch is designed to be compact, ensuring no burden for users to carry it with them.

2) On the user interface,InTouch offers an intuitive interface. While conventional glucometers typically list functions in a text-based menu, requiring users to scroll through options when features are numerous, InTouch presents all functions as tiles, enabling users to quickly and intuitively select the desired feature.

3) In terms of usage,InTouch places great emphasis on providing users with a comfortable experience. For instance, while most blood glucose meters display a countdown timer indicating the remaining time until results are available, InTouch takes a unique approach. During the wait for test results, the screen displays personalized health management tips tailored to the user. By reading these tips, users not only gain valuable knowledge but also pass the otherwise tedious waiting time effortlessly.

4) Data presentation,InTouch adopts a vivid and intuitive approach. For instance, when users utilize the “Trend Monitoring” feature to view their blood glucose levels from the previous week, they will see a display as shown in the figure below: the blood glucose level before meals is displayed next to a complete “apple,” while the postprandial blood glucose level is shown next to an “apple core.”

★ Premium Service Offerings
In the digital health industry, achieving long-term growth requires more than just powerful, well-designed products; companies must also offer high-quality service offerings.

Livongo recognized this and, from its inception, launched a diabetes health management program centered on its InTouch platform. Upon launch, the program received accreditation from the authoritative Association of Diabetes Care & Education Specialists (ADCES), marking the first time in the association’s history that such a program had been accredited.

This project has garnered such favor because it is not merely a disease monitoring service, but a comprehensive service solution designed to assist diabetes patients in managing their health. The advantages of this service are reflected in the following aspects:

Based on the above introduction to InTouch and the analysis of the project, it is evident that Livongo indeed possesses sufficient competitiveness, which explains why the company has consistently maintained a strong fundraising performance.

★ Secured $30 million in financing
During its early stages, Livongo secured seed funding from 7wire Ventures and raised $10 million in Series A financing led by General Catalyst Partners. In 2015, Livongo closed its Series B round, raising $20 million with participation from Kleiner Perkins Caufield & Byers (KPCB), Draper Fisher Jurvetson (DFJ), and General Catalyst Partners. To date, Livongo’s total funding has reached $30 million.

Livongo’s ability to attract investment from so many renowned venture capital firms stems not only from its excellent products and services but also from its exceptional leadership team.

★Team
Livongo’s leadership team is composed of a group of experienced and highly motivated individuals. Each member has years of experience in senior roles at other digital health companies. Some are personally living with diabetes, while others have close loved ones affected by the condition. This personal connection enables them to deeply understand the challenges faced by patients with diabetes and fuels their strong commitment to building an advanced digital health platform that helps individuals with diabetes lead fulfilling and healthy lives.

This team’s characteristics are fully embodied in its CEO, Glen Tullman.

Glen Tullman was already a successful entrepreneur before founding Livongo. As a co-founder of 7wire Ventures, Glen Tullman demonstrated considerable investment acumen, backing multiple successful companies in the healthcare and education sectors, such as Digedu.

In addition, he served as the CEO of Allscripts (1998-2012). Under his leadership, Allscripts increased its annual revenue from $30 million in 1997 to $1.2 billion in 2012. Due to a busy schedule, Glen Tullman left Allscripts at the end of 2012.

Glen Tullman’s determination to found Livongo stemmed from a simple motivation: his son. As his son is a patient with diabetes, a sudden midnight deterioration in his condition made Glen Tullman realize the need for a professional medical service team to provide round-the-clock care for diabetes patients. Thus, Livongo was born.

Currently, Livongo is progressing quite smoothly on its development path. The company’s aspiration to help diabetic patients lead sweeter lives is gradually being realized. However, it should be noted that Livongo still has a long way to go before establishing itself as an advanced platform for chronic disease management. Whether the team led by Glen Tullman can bring greater benefits to more patients with chronic conditions in the future remains to be seen.

By Zi Junwei | Edited by Mo Renying