Venture capital’s interest in investing in digital health companies is still going strong. Well Health is the latest firm to gain funding, raising S45 million in a series C round.
The Santa Barbara, CA-based company has developed an intelligent communications hub and has raised $75 million since 2015.
The series C round was led by Lead Edge Capital. Additional participants include Martin Ventures, the healthcare-focused venture capital firm founded by the executive, investor, and entrepreneur, Charlie Martin, and existing investors Jackson Square Ventures, Health Velocity Capital, Summation Health Ventures, Structure Capital, and Freestyle Capital.
“Well delivers what patients expect today – the ability to engage with their healthcare provider as easily as they’d text a friend,” said Guillaume de Zwirek, CEO and founder, Well Health said in a release. “Although the pandemic fueled the adoption of digital health by many healthcare providers, patients today expect real-time, personalized communication, an expectation that will never fade. This year alone, Well technology will enable 200k-plus healthcare providers to send more than one billion messages with 30-plus million patients.”
The financing follows Well announcing a collaboration with Cerner Corporation, an electronic health records leader. The agreement calls for Well Health to be the patient-communication solution for Cerner’s customers.
Companies with digital health solutions have managed to break through the clutter and attract the eye of venture capital firms cautious of investing during the pandemic. Digital health funding shattered all previous venture capital financing records for the sector by raising $6.3 billion in the first half of the year, according to a report by Mercom Capital Group released in July.
The Austin, TX-based firm reported that the digital health funding in 1H was 24% higher than the $5.1 billion the space raised in the first half of 2019, despite the pandemic disrupting the economy
The top-funded digital health categories in 1H 2020 were: telehealth with $1.9 billion, followed by analytics with $826 million, mHealth apps with $794 million, clinical decision support with $545 million, healthcare service booking with $326, and wearable sensors with $321 million.