EDITOR'S NOTE: This story has been updated with the correct spelling for Hemant Taneja's name.
Better Health, a startup aiming to modernize the medical supply industry, has raised $10 million in a series A funding round, it announced Wednesday.
The round was led by Caffeinated Capital and General Catalyst, alongside participation from billionaire Bill Ackman’s Table Management, 8VC, Anorak Ventures, Tank Hill Venture Partners, Motive Science, Modern Ventures and Unpopular VC.
“We’re excited to continue supporting our members in managing their health at home and to expand our services and offering to meet their growing needs,” said Naama Stauber Breckler, CEO and co-founder of Better Health, in a statement. “When it comes to medical supplies, receiving the right support makes all the difference in improving patient health outcomes and in reducing overall utilization of care.”
Better Health aims to crack into the $60 billion durable medical equipment market with an e-commerce platform. Its tool provides patients with personalized product recommendations as well as estimates for out-of-pocket costs and handles necessary medical and insurance paperwork.
The startup, which launched earlier this year, aims to be a chronic condition care solution, offering peer support, education, telehealth and home delivery of medical supplies all in one. Through Better Health, patients can get personalized recommendations for products suited to their condition, as well as estimates for out-of-pocket costs and the company also handles the related paperwork.
RELATED: Startup medical supplier Better Health secures $3.5M seed round, partnerships with Humana, Oscar
Earlier this year, the company inked partnerships with Humana and Oscar Health.
Raymond Tonsing, the founder and managing partner at Caffeinated Capital, said Better Health had grown its member base four and a half times since his firm’s earlier investment this spring, when the startup had launched. “I love investing in exceptional founders, building category-defining companies disrupting antiquated markets with low NPS,” he said in a statement.
General Catalyst’s Hemant Taneja, managing partner, noted “one of the core pillars of our health assurance thesis is empowering people living with chronic conditions.” He added that every patient should have access to “care with dignity from the comfort of their own home—Better Health allows just that.”
The company cited its recent study, which shows 64% of participants who went through its peer coaching program reduced their number of doctor or hospital visits, while nearly half (47%) improved their mental health scores.
“The primary benefit of the coaching program is that patients are seen as more than just their diagnoses,” said Stauber Breckler in the announcement. “Speaking to their peers helps them normalize their new condition and regain the confidence to travel, manage relationships, exercise and live their best lives.”