Tyto Care, an on-demand telehealth company, raised $50 million in an oversubscribed financing round. Olive Tree Ventures, Insight Partners, and Qualcomm Ventures co-led the round with participation from existing investors, including Orbimed, Echo Health, Qure, and Teuza.
The new funds will help to expand the company’s business operations throughout the U.S., Europe, and Asia, as well as to offer new AI and machine learning-based home diagnostics solutions.
The global telemedicine market will reach $155 billion by 2027, according to Grandview Research. The unprecedented outbreak of COVID-19 across the globe has resulted in increased demand for telemedicine solutions, due to lockdown implemented by several countries as a preventive measure to curb the pandemic.
Tyto Care develops a handheld app-connected at-home medical exams test kit and a clinician dashboard. Its app connects patients with healthcare professionals to receive a diagnosis, treatment plan, and prescriptions – all without leaving their homes. Its solution enables remote medical exams of the heart, lungs, skin, ears, throat, abdomen, and body temperature, among other exams and vitals, allowing healthcare organizations to protect providers and avoid exposure during the COVID-19 pandemic.
Last year, Tyto Care announced a strategic partnered with consumer electronics retailer Best Buy to sell its TytoHome devices on Best Buy’s website for $300. Through its private health system partners, the company sells its products in many countries, including France, Israel, Russia, Spain, Switzerland, Thailand, Uruguay, and the U.K. The company offers individual telemedicine services at $59. The company has threefold growth in sales in 2019 and works with over 100 health telemedicine providers, including American Well, and Teladoc. It performed over 200,000 telehealth exams in 2019.
“The on-demand era has finally reached healthcare,” said Jeff Horing, co-founder and Managing Director at Insight Partners. “Adoption of telehealth is at an all-time high, and as the only solution on the market with diagnostic capabilities that can deliver clinic-quality remote care, Tyto Care is significantly disrupting the health ecosystem. As a partner that empowers fast-growing Scaleup software companies transforming daily life, we are excited to work with Tyto Care to help usher in the next generation of healthcare.”
Tyto Care, co-founded by Dedi Gilad and Ofer Tzadik in 2012, raised over $105 million to date, including a $9 million in additional Series C round in 2019 and a $25 million Series B funding round in 2018.
Thirty-five Telehealth companies received a total of $930 million in Q1 2020, according to Mercom’s latest Q1 2020 Digital Health Funding Report. Recently in a similar deal, KRY, a Swedish on-demand medical consultations service provider, raised $155 million. In another deal, Zhiyun Health, a Chinese online teleconsultation service provider, raised $144 million.