News Roundup: Healthcare Startups & Investments
With healthcare spending accounting for nearly one-fifth of GDP in the U.S., it’s not surprising that many companies are moving into this space. Over the past few years, we’ve seen a spate of new healthcare startups enter the market with the hopes of disrupting the ways in which Americans receive healthcare. We’ve also seen major tech players like Amazon and Google make forays into the industry.
Having just completed our own successful fundraising round, we’ve taken a keen interest in other companies who are venturing into healthcare, and in startups entering the space. Here’s what’s currently going on in healthcare investments and startups since CredSimple’s successful Series B earlier this year:
InsightRX raises $10 million in Series A round
The healthcare startup InsightRX has completed a $10 million Series A fundraising round. The round was led by HealthX Ventures. Rock Health, OSF Healthcare, GreatPoint Ventures, and several others also joined the round. InsightRX has raised more than $13 million in total since its founding in 2015.
The company focuses on improving precision dosing through its cloud-based platform. The InsightRX platform integrates with hospitals’ Electronic Health Records (EHR). Using human-assisted AI and real clinical data, the platform optimizes medication dosages for patients. It can optimize treatment across more than 100 drugs and areas of treatment, including oncology and infectious diseases.
InsightRX represents several major trends in healthcare, including cloud-based platforms, AI, and using data to offer medical treatments optimized for individual needs.
Robin Healthcare Raises $15 Million in Total Funding
Robin Healthcare, which just completed its $11.5 million Series A round, has raised a total of $15 million since its launch. The leader of the Series A round was Norwest Venture Partners.
The company was founded by Noah Auerhahn and Emilio Galan, who have previously founded companies in the healthcare space. Robin Healthcare’s solution is an Alexa-like device that transcribes doctor/patient interactions in hospital rooms. This reduces administrative paperwork and improves overall efficiency
VillageMD Lands $100 Million in Funding
VillageMD recently completed a $100 Million Series B round, led by a $75 million investment from the Swedish investment firm Kinnevik.
The Chicago-based startup is looking to bring its platform to more doctors in a wider range of cities. VillageMD provides doctors with data analytics, clinical support, and staffing support, enabling them to improve patient care. The company was first founded in 2013 by Tim Barry and Clive Fields. To date, VillageMD has worked with more than 2,500 physicians.
Google and Mayo Clinic Partner on Patient Data and AI
Google and the Mayo Clinic recently signed an agreement establishing a decade-long partnership between them. The goal of the partnership is to transform the ways in which the clinic utilizes patient data. It will bring Artificial Intelligence (AI) into healthcare.
Under the terms of the deal, Google Cloud will host all of the Mayo Clinic’s data, although the clinic retains control over the data. Google will also open an office at the clinic’s home in Rochester, Minnesota. Google engineers will work with Mayo’s physicians and scientific researchers to bring AI and advanced data analysis techniques to Mayo’s research efforts.
The long-term vision of the Google-Mayo Clinic partnership is to bring AI directly into the diagnostic process. In keeping with larger industry trends, Mayo is aiming to provide virtual healthcare services in addition to traditional in-person visits.
The financial terms of the deal are currently unknown.
Amazon Launches Virtual Health Clinic for Employees
Amazon has officially launched Amazon Clinic, a virtual clinic for its employees and their families in the greater Seattle area. The clinic will combine telemedicine services with a clinic offering in-person services. Amazon previously hired a top Seattle doctor to run the clinic.
Employees will have the option to schedule video visits with doctors, nurse practitioners, and registered nurses. They can text a nurse and receive a response within minutes. If follow-up care is necessary, Amazon Care will send a nurse for a home visit. The service also enables patients to receive prescription drugs from the pharmacy of their choice.
Over the past year, Amazon has shown signs of moving into healthcare. It is currently partnering with J.P. Morgan and Berkshire Hathaway to address healthcare costs. In 2018, Amazon acquired a pharmacy group under PillPack as well as a research and development group.
Amazon has not yet stated whether it plans to scale Amazon Care beyond its own employees. However, in the past the company has piloted programs with employees. It therefore would not be surprising to see Amazon offer healthcare services to the general public in the near future.
Other tech companies, including Apple, have launched clinics for employees. But Amazon’s large investment in telemedicine makes Amazon Care unique and is indicative of industry trends.
Heal Acquires Doctors on Call
Heal has acquired Doctors on Call for $15 million in cash and stocks. Heal is a startup that provides same-day medical home visits for children and adults. Doctors on Call provides home visits for elderly patients and others who cannot leave the house in New York City. The service was first launched in 1968.
Heal is based in Los Angeles. Thanks to the acquisition, Heal services will be available to more than 75 million people in Atlanta, California, New York, Northern Virginia, and Washington D.C. Heal estimates that it will provide more than 100,000 home visits this year. It has raised about $70 million in total funding.
Currently, Heal has contracts with all major PPOs in California and New York, as well as with Medicare. The company plans to extend its network.
Best Buy Enters Healthcare Space
While Best Buy is known as an electronics retailer, it may soon be known for offering healthcare services as well. Morgan Stanley analysts recently released a report that estimates Best Buy could make anywhere between $11 billion and $46 billion in healthcare services over the next 10-20 years. (For comparison’s sake, the company made about $43 billion total in 2018.)
The company has made three healthcare acquisitions totaling $1 billion over the past year. Last October, it purchased GreatCall for $800 million—its largest acquisition ever. GreatCall provides Jitterbug mobile phones, emergency services, and monitoring technology for seniors. Best Buy purchased another senior-focused business, Critical Signal Technologies (CST), this year. Between the two companies, Best Buy now has about a million paying subscribers to its monitoring services.