At Fierce Healthcare, we keep track of all the venture capital being funneled into the health tech and digital health industries.
Our fundraising tracker provides updated coverage of noteworthy digital health and health tech funding rounds, though we'll still profile exciting new companies and larger rounds that catch our eye in-depth.
Do you have fundraising news to share? Email Senior Editor Heather Landi at [email protected].
For news about funding deals from 2023, check out our 2023 Fundraising Tracker.
Updated: Tuesday, Jan. 3 at 3:10 p.m. ET
Morgan Health pumps $25M into data analytics provider
JPMorganChase business Morgan Health has invested $25 million into Ann Arbor, Michigan-based technology provider Merative.
Merative serves 40% of Fortune 100 employers, Morgan Health said in a news release. They will use the funds to help scale the company’s data needs and support various software products. Morgan Health said it will also aid Merative with “technical expertise.”
“For years, employers have increased their spending on health care without commensurate improvements to the quality of care,” said Morgan Health CEO Dan Mendelson in a statement. “Actionable data can improve patient outcomes by helping employers target the right innovations and interventions. It’s critically important to put scalable, customizable solutions into employers’ hands to empower them to be more sophisticated purchasers of health care and make more precise decisions regarding the needs of their populations.”
The Merative platform, called Truven has Health Insights, or employer and payer analytics, to gauge benefits performance. Claims data, from more than 450 suppliers, employers, state Medicaid plans and health plans are included.
Private equity firm Francisco Partners bought IBM Watson Health in 2022 for $1.5 billion and launched Merative as a standalone data analytics brand.
Morgan Health was given $250 million to invest in companies focused on improving employer-sponsored healthcare. The company takes minority positions in companies that reduce costs, improve equity and improve outcomes, Mendelson told Fierce Healthcare in an interview.
Merative says it gives employers a more “comprehensive” view of a company’s health care circumstances.
General Catalyst, Broussard backs supplemental benefits company Soda Health
Soda Health, a health tech company managing Medicare Advantage supplemental benefits, closed a $50 million Series B financing round.
The company said it will use the funds to “scale operations, launch new data products and expand capabilities to new CMS-compliant benefit categories and gap closure capabilities to improve star ratings,” according to a news release.
Supplemental benefits are a driving factor in MA’s surging enrollment, as consumers take advantage of extra dollars. But Soda Health believes the administration of these benefits across the industry are lagging behind an acceptable standard because technology has not kept pace. As such, members don’t understand how to best use their benefits or what products they can purchase, the company explained.
With Soda Health, health plans can launch benefit programs with access to a large retail network. This helps plans improve star ratings, as well improve experience and outcomes. Retailers can more easily deliver product benefits for pharmacy services and other products. And members get to utilize an easier navigational experience.
“We are on a mission to ensure supplemental benefits add value to all in the healthcare ecosystem – that they keep patients healthier, enable retailers to leverage their relationship with consumers, and provide a key touchpoint to patients for payors,” said Robby Knight, co-founder and CEO of Soda Health, in a statement.
The round was led by General Catalyst and the company earned capital from former Humana CEO Bruce Broussard, who recently joined VC firm Define Ventures, another Series B investor, as a partner.
Other investors include Lightspeed Venture Partners, Qiming Venture Partners USA and SVB Capital. Former Uber Health head Caitlin Donovan, who is now a partner for General Catalyst, will join Soda Health’s board.
The Soda Health platform lets members use funds on good and services at the country’s largest grocery chains including Kroger, CVS, Hy-Vee and Albertsons.
“Soda Health has amassed a high-value network with the most innovative retailers in the country,” said Broussard in a news release. “They are uniquely positioned to create a new incentive structure to better serve members, health plans, and retailers to improve outcomes and lower the cost of care.”
The company was founded in 2021 by former Walmart and Optum executives.
Remote diabetes management company hauls in $60M
Beta Bionics landed a $60 million series E preferred stock financing round to build out its diabetes management product pipeline.
Beta Bionics’ flagship product, the iLet Bionic Pancreas, is an autonomous insulin delivery system that streamlines diabetes management. Proceeds from the financing will support expanded commercialization of the iLet and development of the product pipeline as Beta Bionics works towards improving health outcomes and the quality of life of children and adults living with diabetes and other conditions of glycemic dysregulation, according to the company.
New investor Wellington Management led the series E round. Previous investors Eventide Asset Management LLC, certain funds managed by RTW Investments, Sands Capital, Soleus Capital, Omega Funds, Perceptive Advisors and Marshall Wace also participated.
The medical device company uses advanced adaptive closed-loop algorithms to simplify and improve the treatment of diabetes. The iLet Bionic Pancreas is the first FDA-cleared insulin delivery device that autonomously determines every insulin dose and offers the potential to substantially improve overall outcomes across broad populations of insulin-requiring people with diabetes.
Diverge Health reels in $52M to support Medicaid members
Medicaid startup Diverge Health picked up $52 million, backed by GV (Google Ventures), Triple Aim Partners, SCAN Health Plan CEO Sachin Jain, M.D., and former Centene executive Christopher Bowers, among others, according to a LinkedIn post from co-founder and CEO Binoy Bhansali.
According to its website, Diverge Health brings deep infrastructure to practices, including highly trained community health teams, administrative support and technology, to deliver local population health management. "By leveraging our solutions, primary care practices achieve outstanding results for their patients and thrive in the transition to value-based payment models," the company said.
"Through proprietary recruiting, training, and coaching programs that have been honed and tested in partnership with risk-bearing providers, Diverge Health supports patients with in-home, self-management coaching, while escalating urgent health needs to clinicians to avert complications," the company said.
The foundation of Diverge Health’s community health worker model was built by City Health Works, a 501(c)3 nonprofit—Diverge Health acquired the intellectual property of City Health Works in 2023.
Sirona Medical picks up $42M to scale up cloud-native radiology IT platform
Sirona Medical secured $42 million in series C financing, inclusive of equity and converted debt. Avidity Partners, a participant in the previously announced series B financing, led the round with additional participation from other existing investors, including 8VC and GreatPoint Ventures.
The startup, a developer of a cloud-native platform for radiology IT software, emerged out of stealth in 2022 and launched commercially a year ago. Sirona claims it is differentiated in its ability to seamlessly integrate the critical elements of the radiologist's workflow—worklist, viewer, reporter and PACS archive—and it is the only company demonstrating this capability through commercial validation.
The fresh capital will support continued evolution of the company's Unify platform, particularly around workflow efficiency and AI-powered report generation as well as ongoing customer service and support. The funding also will support commercial expansion.
Sirona's Unify platform is the flagship radiology workflow solution that unifies diagnostic and clinical image viewing, radiology reporting, worklist, and AI (including impression generation) on a single cloud-native platform. The Unify platform can be deployed as an overlay to existing on-premises systems (PACS and RIS), allowing radiology practices that service multiple hospitals and health systems to combine disparate workflows into a single unified workflow experience.
Hooman Hakami, a seasoned healthcare leader who has served as a senior executive at GE Healthcare and Medtronic, has joined the company as CEO.
The startup raised $40 million in series B funding in November 2023. Sirona Medical has raised $104 million total, to date, according to CB Insights.
TailorMed secures $40M for patient financial assistance platform
Medical costs continue to be a significant barrier for many patients. TailorMed built says it built the nation’s largest affordability network, uniting patients, providers, pharmacies and life science companies to tackle this challenge.
The startup's comprehensive technology suite allows financial assistance to be leveraged by any provider, pharmacy or patient, anywhere a prescription is written or dispensed. TailorMed Platform is disease- and therapy-agnostic and can interface with any EMR, pharmacy or practice management system via API or data feed, executives said.
The startup raised $40 million in a financing round that combines equity and debt. Windham Capital Partners led the round, alongside Citi Impact Fund, Samsung Next and BrightEdge along with the investment arms of some of the nation’s top health systems: Providence Ventures, OSF Healthcare, Inception Health, Ballad Ventures, UH Ventures and UnityPoint Health Ventures.
Early investors also contributed to the round including Sanara Ventures, Triventures, Accelmed, Almeda Ventures and Bridges. The debt facility was led by Poalim-tech, part of Israel’s leading bank, Bank HaPoalim.
TailorMed says its network is deployed across more than 800 hospitals, 1,300 clinics and 650 pharmacies.
Healthcare staffing startup Stepful clinches $31.5M
As healthcare providers work to close critical workforce gaps by 2025, Stepful built a training and staffing solution to get more allied health professionals into the workforce.
The startup raised $31.5 million in series B funding led by Oak HC/FT. Y Combinator, Reach Capital, AlleyCorp, SemperVirens, Company Ventures, Green Sands, ECMC Education Impact Fund, Intermountain Ventures and Cedar Pine also participated in the round.
Stepful offers educational training programs for both entry-level positions, including medical assistants, medical admins and pharmacy technicians, and advanced programs for licensed practical nurses and surgical technicians. Unlike other trade schools, Stepful is an AI-powered learning platform with an accelerated format, lower costs and placement for students who successfully complete the program.
As the U.S. healthcare system faces a shortage of 3.2 million allied healthcare workers, nurses and mental health professionals by 2026, Stepful offers educational training programs for working adults, particularly from historically underserved communities, who are looking for entry-level and advanced positions in healthcare settings.
The company has seen strong growth in its business, expanding from 50 students in 2021 to more than 30,000 enrollees projected in 2024. With this new funding, Stepful will expand its B2B offering and continue growing its health system partnerships.
CVS, Optum, GV back virtual care for neurodegenerative diseases
Synapticure developed a virtual care solution to improve access and outcomes for patients and caregivers living with Alzheimer's and related dementias, Parkinson's and other neurodegenerative diseases.
The startup secured a $25 million series A funding round led by B Capital. The round included new investors CommonSpirit Health, CVS Health Ventures, RA Capital Management and Nexus NeuroTech Ventures as well as existing investors GV (formerly Google Ventures), Optum Ventures and Rock Health Capital.
Synapticure was co-founded by patient Brian Wallach and caregiver Sandra Abrevaya, known for their advocacy and leadership in the neurodegenerative disease community documented in the film "No Ordinary Campaign." The startup aims to address the unmet needs of patients and caregivers living with neurodegenerative diseases, including Alzheimer's and related dementias, Parkinson's, ALS, Huntington's disease and beyond.
Since its launch in 2022, Synapticure has rapidly grown to serve several thousand patients across the U.S. as the only specialty virtual care platform providing comprehensive care and treatment for cognitive, neuromuscular and movement disorders.
The company delivers unparalleled access to top neurologists, clinical trials and holistic wraparound services such as mental health care and physical therapy—all directly to patients’ homes.
Synapticure will use this funding to expand partnerships with leading healthcare providers and payers and invest in its technology platform, further deploying AI-enabled analytics and clinical research to accelerate diagnosis and treatment. The company also plans to fast-track clinical research and expand patient access to emerging treatments and clinical trials. It also aims to scale its national medical group by bringing on additional providers.
Alloy Women's Health lands $16M for menopause care
Alloy Women's Health, a menopause care platform offering telemedicine services and treatment plans, raised $16 million in series A funding.
In a LinkedIn post, co-founders Anne Fulenwider and Monica Molenaar said November 2024 marks the startup's three-year anniversary. Kairos HQ led the round, with participation from PACE Healthcare Capital, Emmeline Ventures and Amboy Street Ventures.
"This funding enables us to expand our offerings and services so that we can continue to provide all women nationwide with information they can trust, expert care they need, and solutions that really work," Folenwider and Molenaar wrote in the LinkedIn post.
Alloy has successfully reached profitability after three years, the co-founders wrote. The startup has grown its customer base more than 300% year over year.
The Alloy platform offers asynchronous treatment by doctors, with a $50 annual fee and prescriptions starting at $40 a month, Fortune reported. The startup plans to expand from treating acute menopause symptoms to offering products across hair, skin and sexual wellness categories for women in midlife.
Seen Health launches to expand PACE care to seniors
Seen Health emerged from stealth last month to provide culturally focused care for seniors.
The startup provides services to help seniors age at home through a culturally focused care model built upon the proven Program of All-Inclusive Care for the Elderly (PACE) model.
Seen Health also scored $22 million in funding to expand access to care for more than 10 million eligible seniors nationwide. The series A funding round was led by 8VC with participation from Basis Set, Primetime Partners, Virtue and Astrana Health.
Seen Health plans to use the funding to fuel development of the company's technology. And, the startup plans to open its first center in Los Angeles County's San Gabriel Valley to serve the local Asian and Pacific Islander (API) community. With ties to the origins of PACE in API communities in San Francisco in the 1970s, Seen Health's care model and centers are designed with a cultural focus—including providers and staff who speak participants' native language, family involvement in care, the incorporation of Eastern medicine and cultural activities.
Twin brothers Xing and Yang Su founded Seen Health out of their own experiences in supporting aging family members, according to a press release. They bring over a decade of experience each from leading technology companies including Uber and Salesforce.
For more than 50 years, PACE has been considered the gold standard of senior care, delivering comprehensive medical and social support for seniors with chronic conditions who are covered by Medicaid and Medicare—providing an alternative to nursing home care by enabling seniors to stay in their homes. Despite PACE's strong outcomes, with 24% lower hospitalization rates and high satisfaction, fewer than five% of eligible seniors are enrolled.
Seen Health aims to change that with community-focused, technology-enabled care through its centers and in participants' homes.
New Lantern snags $19M for radiologist workflow solution
New Lantern emerged from stealth to launch its AI radiology solution, backed by $19 million in series A funding led by Benchmark. Afore Capital, Anthology Fund, Neo, SV Angel, Guillermo Rauch, Amjad Masad, Saji Wickramasekara, Jay Kreps and Gokul Rajaram, among others.
Radiologists waste eight hours per shift hand-drawing measurements, dictating reports and on follow-up phone calls, according to New Lantern. The startup uses artificial intelligence to enable radiologists to work faster and focus their energy on the images, which translates to improved speed of care for patients and increased revenues for radiologists, the company said.
New Lantern says its cloud-native AI radiology suite automates 25% of radiology workflows, and, over time, the company aims to automate up to 90% of workflows to effectively act as an AI radiology resident.
With the new funding, New Lantern plans to invest in continued R&D as well as hire and grow its team across engineering and sales.
Clinical research platform scores $15.5M
Medeloop, a medical research platform, clinched $15.5 million in a series A funding round, led by global venture capital firm Inovia Capital and supported by significant contributions from Icon Ventures. Previous investors General Catalyst and Maven Ventures as well as new investors including Healthier Capital, Up2 Opportunity Fund and CFO Advisors also participated in the round.
Medeloop's technology streamlines processes and uses autonomous AI agents to handle tasks traditionally requiring large teams. The technology speeds up research and helps individual researchers and smaller institutions to compete with well-funded, large-scale operations, according to the company. Medeloop's analytics platform can perform analyses up to 1,000 times faster than traditional methods.
The startup plans to expand its end-to-end AI-powered platform.