By: Michael Esquivel
Two blockbuster deals drove digital health financings to record levels in April. The month saw a total of nearly $790 million in deal flow, with the ten largest financing transactions of the month matching the first quarter total.
JawBone, developer of the Up fitness band, is widely reported to have closed the largest financing round in the digital health space so far this year. The company is reported to have picked up as much as $300 million in debt from BlackRock, maintaining its unicorn status.
Speaking of unicorns, New York-based Oscar Health Insurance joined the club with a $145 million Series B investment by Founders Fund, Goldman Sachs, Horizon Ventures and Wellington Management. Oscar leverages technology to provide insurance coverage that includes unlimited telemedicine consultations and free preventive care including checkups, flu shots and generic medication to its members.
Scanadu, which is developing a suite of mobile medical products for consumers including FDA-approved diagnostic tools using mobile and sensor technology, took in a $35 million Series B investment. Fosun International and Tencent Holdings Limited led the round with participation from China Broadband Capital, Iglobe Partners of Singapore as well as existing investors Relay Ventures, Redmile Group, Ame Cloud Ventures, and Three Leaf Ventures.
Investment in Peloton, creator of an at-home fitness bike that provides access to live-streaming and on-demand classes, was the fourth largest financing of the month. The New York-based company received a Series C investment for $30 million led by True Ventures and Tiger Global Management.
Four digital health companies received investments of $20 million or more in April.
ShareCare, an online health and wellness engagement platform that, among other tools, developed the RealAge Test, received a $20 million investment from Wellington Management and a direct $5 million investment from Trinity Health, expanding their partnership.
Livongo Health took in a Series B round from investors including Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson and previous investor General Catalyst Partners. The mobile software company develops tools that help patients, caregivers and payers manage chronic conditions.
Novu is a SaaS company that integrates payers, providers and member data to facilitate member-driven wellness actions and decisions. Based in Minneapolis, Novu received a growth equity investment from SSM Partners and Noro-Moseley Partners.
Last but not least, we saw San Francisco based Honor take in a $20 million initial investment last month. Honor is launching a platform to connect seniors and their families with in-home caregivers. Leading the round, Andreessen Horowitz contributed $15 million with Marc Andreessen joining the board. The remainder of the financing was completed by high profile angel investors.