Digital personal health and wellness companies secured $585 million in Q1 2021 compared to $363 million in Q4 2020, a 61% increase quarter-over-quarter.
Year-over-year funding increased by 372% in Q1 2021 compared to $124 million raised in Q1 2020, according to Mercom’s Q1 2021 Digital Health Funding and M&A Report.
Tonal, a connected home fitness system, raised $250 million in the latest funding round, valuing the company at $1.6 billion. The Series E round was led by Dragoneer, a growth-oriented investment firm, with participation from Cobalt Capital, new athlete investors, and existing investors, including L Catterton and Sapphire Ventures. Tonal has raised over $450 million to date.
BetterUp, a digital employee wellness coaching platform, raised $125 million in a Series D funding round, bringing the company’s valuation to $1.73 billion. ICONIQ Growth led the financing with participation from existing investors, Lightspeed Venture Partners, Threshold Ventures, Plus Capital, new investors, Salesforce Ventures, Sapphire Ventures, and Mubadala Capital. BetterUp has raised a total of $300 million to date.
EverlyWell, a digital health company that connects individuals to certified lab test kits online with digitally-enabled results to promote health and wellness, raised $75 million in a funding round led by HealthQuest Capital. EverlyWell has raised $325 million to date.
Modern Health, a mental well-being platform that provides access to scientifically validated digital programs and meditations, closed a $74 million Series D funding round led by venture capital firm Founders Fund with investment by Lachy Groom. Modern Health has raised more than $170 million to date at a valuation of $1.17 billion.
Since 2010, 361 digital personal health and wellness companies have raised over $5 billion in venture capital funding, according to Mercom’s digital health funding data.