As the COVID-19 pandemic continues to affect millions around the world, more patients than ever are using telehealth service for care – avoiding overcrowded emergency rooms and physician practices in favor of virtual consults.
Telehealth was the most funded category in digital health, raising a record $930 million in VC funding in Q1 2020. This is the largest amount of funding raised by telehealth companies in a quarter ever since 2010, according to Mercom Q1 2020 Digital Health Funding Report. Funding was up 244% year-over-year in the first quarter compared to $270 million raised in Q1 2019. The telehealth funding momentum is likely to continue during the rest of 2020.
The top five funding deals accounted for over half (54%) of the total $930 million VC funding in Q1 2020. The remaining amount was distributed between 30 telehealth companies.
Top VC Funded telehealth companies in Q1 2020:
KRY, a Swedish company providing on-demand medical consultations through video calls, raised $155 million in Series C funding round. Ontario Teachers’ Pension Plan (Ontario Teachers’) through its Teachers’ Innovation Platform (TIP), led the financing round, with participation from existing investors, Index Ventures, Creandum, and Accel (formerly known as Accel Partner). The company, founded in 2014, has raised over $230 million to date.
Zhiyun Health, a Chinese online teleconsultation platform for diabetes patients, raised $144 million in Series C+ and D rounds. SIG Asia Investments led the Series C+ round, with participation from OP Financial, and Samsung Electronics. CMB International led the Series D round. Other investors who joined in the round were Bojiang Capital, LB Investment. The Chinese company has raised almost $260 million since its founding in 2014.
Virta Health, an online medical clinic that uses one-on-one coaching, personalized nutrition, and remote monitoring to reverse type 2 diabetes without medications or surgery, raised $93 million in Series C funding, bringing the total equity funding to $166 million since its inception in 2014. Caffeinated Capital led the financing round with participation from early investors Venrock, Obvious Ventures, Creandum, Playground Global, and SciFi VC.
American Well, an online telehealth platform that allows patients to connect with healthcare providers through video, text, chat, and phone, raised $60 million in equity funding. Founded in 2006, the company has raised over $520 million to date.
K Health, an AI-enabled digital primary care platform, raised $48 million in Series C funding. 14W and Mangrove Capital co-led the financing round, with participation from Anthem, Lerer Hippeau, and Primary Venture Partners.
Image credit: Intel Free Press / CC BY-SA (2.0)
