Telehealth Company CityBlock Health Raises $160 Million at Over $1 Billion Valuation

CityBlock Health, a startup that offers primary care, behavioral health, and virtual care services for lower-income communities in the U.S., completed a $160 million Series C funding round at a valuation of over $1 billion.

New Cityblock investor General Catalyst led the round, with participation from crossover investor Wellington Management and support from major existing investors, including Kinnevik AB, Maverick Ventures, Thrive Capital, and Redpoint Ventures.

According to the company, the new funding will support its national expansion in caring for Medicaid and dually-eligible communities, to attract and onboard talent across its product, engineering, data science, clinical, and business operations, to launch new service lines, and to continue investing in its technology platform, Commons.

The Series C funding round brings Cityblock’s total equity funding to $300 million, including a $53.5 million Series B+ funding round in July 2020.

Launched in 2017 out of Alphabet’s Sidewalk Labs and anchored in the first partnership with EmblemHealth, Cityblock usually partners with community-based organizations and health plans to deliver medical care, behavioral health, and social services virtually, in-home, and in their community-based clinics.

The company’s integrated care teams include doctors, nurses, practice clinicians, behavioral health specialists, licensed clinical social workers, and community health partners.

According to the company, the integrated care teams provide care to 70,000 members in four major U.S. metro areas – New York, Connecticut, Massachusetts, and Washington, DC.

“The devastating impact of Covid-19 has been a painful reminder of the vulnerability of lower-income communities and communities of color,” said Iyah Romm, co-founder, and CEO of Cityblock Health.

“We cannot turn a blind eye to a healthcare system that cycles vulnerable communities through frequent ER visits and hospital stays. We believe that new models of care delivery, rooted in preventative care and augmented with social services, are one major path forward to righting the injustices of our healthcare system. This starts with listening to our members, extends through changing payment models to create sustainability for primary care providers and building technology to democratize access to the care models that we are building.”

Telemedicine companies raised $3.3 billion in the first nine months of 2020, according to the latest Mercom digital health funding report. Recently, telehealth startup Sofia raised $19 million in a Series A funding round, bringing the company’s total to over $25 million to date.