Firefly Health, a virtual primary care provider, closed a $40 million Series B financing round led by Andreessen Horowitz (a16z).
Existing investors F-Prime Capital and Oak HC/FT also participated in the round. As part of the round, a16z General Partner Julie Yoo will join the Firefly Health board.
The funding will support the launch of the new health plan for employees and their families.
Firefly Health offers virtual primary care services through a clinical team and network of clinical partners. The company currently operates in Massachusetts, Maine, New York, and New Jersey and is expanding into several new markets in 2021.
The Firefly Health technology-enabled platform enables better care triage, reduces specialist costs and unnecessary referrals, and helps patients navigate the complex healthcare system according to the company.
“Virtual primary care saw tremendous growth over the last year. But, disconnected, episodic care – virtual or not – does not address the overly burdensome, wildly expensive process patients typically face in the healthcare system,” said Fay Rotenberg, CEO of Firefly.
Fay Rotenberg added: “We are a virtual-first healthcare delivery system with primary care providers, virtual specialists, and behavioral health providers that is complemented by a network of physical facility partners and underpinned by a powerful technology-enabled operating platform. Our model, packaged as a full health benefit, makes half-priced healthcare that is twice as good clinically and emotionally a reality for all our patients.”
Firefly’s Executive Chairman, Jonathan Bush, added, “Today’s investment will meaningfully accelerate Firefly’s ability to go national and bring to market a full benefit plan, truly allowing us to bend the cost curve and further differentiate our platform to the employer community.”
Telehealth companies secured a record $4.3 billion VC funding during 2020. The funding amount was a 140% increase in 2020, compared to $1.8 billion raised in 2019. Recently, CirrusMD, a chat-based telehealth provider, raised $20 million in a Series C funding round.