Verily closed out 2020 with a massive $700 million funding round that will be used to rapidly scale up its commercial work.
Alphabet’s life sciences and healthcare subsidiary announced the funding round last week, which was led by its parent company and Google holding firm Alphabet as well investors Silver Lake, Temasek, Ontario Teachers’ Pension Plan and other backers.
The capital will be used to support the expansion of some of Verily’s leading commercial businesses, the company said.
Verily plans to pour some of the funds into its clinical research platform Baseline as well as its work in population health, clinical care delivery, and chronic disease management through programs like Healthy at Work and its virtual clinic Onduo.
The company also plans to use the capital to expand the new stop-loss insurance business it launched this year in conjunction with Swiss Re. Called Coefficient Insurance Company, the business will combine innovative health technology solutions with novel insurance and payment models and aims to protect self-funded employers from unexpected and large employee health benefit claims.
Coefficient will focus on what Verily calls "precision risk" to provide self-funded employers with more predictable benefit plan protection and help control cost volatility.
The proceeds of the funding round will also help advance Verily’s research programs in digital surgery, pathology and immunology.
"We’re humbled and excited about the opportunity to expand the scope and rapidly scale our products and services. With this new round of funding from our largest investors, they are strengthening their commitment to help expedite our original vision,” said Andrew Conrad, CEO and founder at Verily.
“2021 will be a year of significant and focused growth for Verily’s operations as we continue to drive innovation in our core programs, launching more studies and study tools on Baseline to support decentralized research, and expanding our Health Platforms product offerings and services for employers, providers, and patients," he said in a statement.
Verily raised $800 million from Singaporian firm Temasek in 2017, followed by $1 billion in 2019 in a round led by private equity firm Silver Lake. The company has raised $2.5 billion to date, according to Crunchbase.
Verily has quickly expanded the scope of its work in healthcare and research during the COVID-19 pandemic.
The Baseline Platform has supported COVID-19 testing and research efforts with multiple partners this year, having screened and tested nearly 2 million people across 351 testing locations, according to the company.
The company's Healthy at Work program was launched in June to help businesses and universities to reopen safely.
As part of the Health Platforms business, Onduo expanded its offering this year by applying its virtual clinic model to support hypertension and general wellness, in addition to Type 2 diabetes.
"Verily has an impressive roster of platforms and a demonstrated ability to apply core capabilities in laboratory and data science, engineering, and clinical expertise to tackle the challenges of a healthcare system in need of an overhaul for the benefit of all the stakeholders it serves,” said Egon Durban, co-CEO at Silver Lake.
“We’re here as a partner to Andy, Alphabet, the board and the management team, and a believer in their vision of empowering people and organizations with solutions that support personal and population health journeys, and of helping to unify the ecosystem, from research to care," Durban said in a statement.