Modular device and telehealth company Tyto Care has scored an additional $50 million in series D funding in a development that doubles the company’s valuation, the company reported.
With the new funding, Tyto Care has raised $100 million in the last 10 months. The company has raised $155 million to date.
Insight Partners led the funding of the at-home medical kit maker. Insight Partners has been active with investments in the healthcare space. It has also recently announced investments in Eden Health, a concierge provider that delivers healthcare services to employers and commercial real estate building landlords. Insight Partners also recently led a round of series C funding for RapidSOS, which offers software for emergency response and disaster management.
For this round, Tyto Care lined up new investors that include Tiger Global Management and Qumra Capital along with new funding from existing investors Qualcomm Ventures, Olive Tree Ventures and Shenzhen Capital Group Co.
Dedi Gilad, co-founder and CEO of Tyto Care, believes the company was able to attract investments from these partners because of its full-stack telehealth solution and artificial intelligence capabilities.
The COVID-19 pandemic has brought significant growth in telehealth, and 60% of patients who responded to a recent Accenture survey indicate they plan to continue using it when the health crisis is over.
Tyto Care has experienced strong adoption during the pandemic and sees growth in telehealth among hospitals, insurers and health systems. The company's revenue more than doubled in 2020. Last year, Tyto Care performed 650,000 telehealth examinations globally, the company said.
The round of funding is a continuation of the company’s series D round, which began in April 2020 when it raised $50 million, Gilad told Fierce Healthcare.
With the funding, Tyto Care plans to make its telehealth and remote examination platform available to more customers in the U.S., Europe and Asia. It also will continue to introduce diagnostic solutions powered by AI and machine learning.
The funding will also enable Tyto Care to make inroads in the healthcare payer market, according to Gilad.
Tyto Care differs from many other telehealth solutions by going beyond audio and video to incorporate a full physical exam. The Tyto Care product comprises an app and a mobile device with modular attachments for exams such as an otoscope for the ears, stethoscope for heart and lungs, and a tongue depressor for the throat. In January, Tyto Care expanded its platform with a pulse oximeter to monitor patients’ blood oxygen saturation levels and heart rate.
These modular components deliver important data to help physicians evaluate patients, Gilad noted.
“They provide physicians with the clinical data they require to remotely monitor, diagnose and treat more conditions accurately by fully replicating an in-person visit from any location at any time,” Gilad said.
Jeff Horing, co-founder and managing director for Insight Partners, cited the end-to-end capabilities of the Tyto Care platform as a reason for investing.
“Tyto Care sets itself apart in the telehealth market by providing patients, clinicians and healthcare organizations worldwide with a unique end-to-end solution that goes far beyond the average video visit, with clinic-quality examinations and AI-powered diagnostic capabilities,” Horing said in a statement.
During the HLTH 2020 virtual conference in October, Tyto Care introduced AI-powered features that detect abnormalities in lung and throat exams and sends alerts to clinicians. Tyto Care is also developing ML algorithms for decision support, the company reported at the time. AI will make virtual care more personalized and reach a wider population, Gilad noted.
In 2019, Time named Tyto Care one of the 100 best inventions. Gilad and Ofer Tzadik formed the company in 2012.
Beyond the COVID-19 pandemic, telehealth providers will continue to attract strong investment, industry stakeholders say.
“Investments in telehealth are an investment in the future of global healthcare,” Gilad said. “The on-demand era has long arrived to the health industry, but telehealth has still yet to maximize its market potential.”
Gilad says telehealth is part of new modalities of care that include virtual primary care, remote monitoring, asynchronous services and healthcare backed by data.