4.05.21
4 min. read

About $600M in health tech funding. Trivia answer.

Issue 022

Welcome back to E&O Mondays, the free newsletter from Exits & Outcomes that features the world’s most complete weekly health tech funding round-up.

 E&O Mondays.

In this issue:

  • After weeks of $1 billion round-ups, I’m not sure we even cracked $600 million last week.
  • There are also a few answers to last week’s trivia question along with the very smart readers who got it right.
  • Finally, if you’re new to E&O Mondays, this free newsletter isn’t much like the ones I send out Fridays and every-other-Wednesday (or the long-form research reports). Yea, yea, it’s great and all, but you’re really missing out if you only read this funding list each week. So, consider becoming a full-fledged subscriber of E&O by clicking right here…

This week’s health tech funding deals

OK, here’s what I found for the past week (a * means you are reading it first in E&O):

* Here’s an interesting SEC filing to kick this issue off: Hinge Health filed for a $9.6 million equity raise on April Fool’s Day. Bit odd for a company that just raised $300 million in January, right? The filing has a box ticked that this transaction is in connection to an acquisition, which suggests that $9.6 million in stock may have been part of the Hinge-Enso acquisition from a few weeks back. (The deal may have been bigger than that figure as it could have included cash and earn outs, of course.)

The Founder and CEO of Teladoc, Michael Gorton, who led the company from 2002 until 2010, is back with a roll-up play called Recuro Health. The company announced an undisclosed amount of funding last week led by OLSF Ventures.

Friday Health Plans, a Colorado-based health insurance startup, has raised $160 million. Here’s how that figure breaks down: $100 million from PE firm Vestar Capital Partners along with $60 million in debt financing from London’s Leadenhall Capital Partners. “Friday will leverage the additional funds to expand into new markets with a focus on technology-driven individual and small-group health insurance.”

BrightInsight, which has built a regulated digital health platform for biopharma and medtech companies, raised a $101 million Series C led by General Catalyst. Insight Partners, New Leaf Venture Partners, and Eclipse Ventures also contributed. BrightInsight has now raised $166 million in total.

Rightway, which offers care navigation and pharmacy benefits services to employers, raised a $100 million Series C led by Khosla Ventures, with a little help from Thrive Capital and (the prolific) Tiger Global Management.

Cleo, which offers employers a range of family benefits, raised a $40 million Series C led by Transformation Capital. Glynn Capital, PruVen Capital, Gaingels also joined the round as new investors. Cleo has now raised $83 million.

Augmedics, an augmented reality surgical image guidance company, raised a $36 million Series C Eight months ago it raised its $21 million Series B. Its total funding now stands at $63 million.

A British Ro and Hims competitor, Manual, which also offers tele-consults and prescriptions for men’s health and wellness, raised a $30 million Series A from US-based Sonoma Brands and Waldencast. TechCrunch

SteadyMD, a DTC primary care telehealth company, raised a $25 million Series B led by Lux Capital. Sound Ventures and Acrew Capital also contributed. Notably, Anne Wojcicki, the co-founder of 23andMe (which just SPAC’d itself onto the public markets) also invested in the Series B. 23andMe has pointed to virtual care as a key growth driver for the business as part of its pitch to Wall Street.

CirrusMD, a text-based, on-demand virtual care provider, raised a $20 million in a Series C round of funding led by Blue Venture Fund, with a little help from 7wireVentures, Drive Capital and the Colorado Impact Fund. 7wire is Glen Tullman’s venture fund, and it is worth remembering that his new startup Transcarent will offer text-based virtual care to employers too.

Inbox Health, which helps practices automate and personalize patient communication and bill delivery, raised a $15 million Series A led by Commerce Ventures.

India’s HealthPlix Technologies, an EHR and e-prescribing startup, raised a $13.5 million not-yet-complete Series B. Lightspeed led with help from existing investors JSW Ventures, Kalaari and Chiratae.

* Pyx Health, which aims to reduce loneliness and social isolation via chatbots and real live humans, quietly raised $12 million. Site

Peloton-like startup CLMBR quietly raised $11 million. CLMBR isn’t a bike, it sells a vertical climber that, like Peloton, has “a large-format touch display with on-demand, instructor-led classes.” Site

Chatbots for patient appointment booking and care plans startup Lifelink Systems raised a $9.75 million Series A.

Medxoom raised an $8 million Series A for its white-labeled benefits navigation offering for self-insureds.

* MedZero, a mobile lending service for employees facing out-of-pocket health care costs, quietly raised $5.5 million in a mix of equity, option, and other securities. Site

* Dentulu, an app-based virtual dentist provider, raised $5.5 million via a SAFE. “People can now access oral health care professionals through teledentistry, which incorporates a combination of telecommunication, digital imaging, and video chat.” Site

Germany’s Vantis, a cardiovascular-focused digital therapeutics company, raised a $4.5 million seed round from Firstminute Capital and btov Partners. Its first product, a digital therapeutic for people with coronary artery disease, should launch in Germany this summer.

Mantra Health, a digital mental health clinic that provides services to colleges and universities, added another $2 million.

* Reciprocity Health, a patient engagement company that uses financial incentives, social dynamics and gamification, raised $545,000 in a mix of equity, debt, options, and other securities. Site

* Docovia, which offers a white-labeled virtual visit platform to medical practices, quietly raised $300,000. Site

* Modify Health, a food delivery service and virtual care consultation offering for people with IBS, quietly added another $300,000. Site

Health Tech Trivia Answer

Typically, this is where I’d put the answer to last week’s Health Tech Trivia Question… but I realize this open-ended one has many correct answers. Despite that, very few people got it!

ICYMI – the Question was: We recently learned that Prince Harry, the Duke of Sussex joined mental health and employee productivity startup BetterUp as its Chief Impact Officer. Over the years, a number of musicians, actors, and TV personalities have joined digital health startups as investors, advisors, or at creatively-named C-level positions, like the Duke. Can you name three other such celebrities? (Bonus points if you remember each company’s name too.)

Sample correct answer: One of the correct responses listed out three of Forward Health’s celebrity investors: The Weeknd, Matthew McConaughey, Ashton Kutcher.

Raise a glass to this week’s winners:

  • Amanda DiTrolio, Intelligence Associate, Healthcare, CB Insights (Linkedin)
  • He Wang, Associate, Eight Roads Ventures China (Linkedin)

Until next week…

What did you think of Issue 022 of E&O Mondays?
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