Last Week in Digital Health Funding: Oct 21 – Oct 27
The following companies raised funds during the past 7 days: MediView, Lively, Immertec, AZTherapies, Nymbl Science, Fitt, Octave, Medinas, XLerateHealth, AVIA, Pepticom, AppliedVR, Viz.ai, Path, and Augmedix.
MediView raised $4.5M Seed round to equip surgeons with AR imagery. The company has developed the AR Surgical Navigation Platform tool that helps surgeons remove cancer tumors in a way that is similar to controlling a video game. Using Microsoft HoloLens or other AR goggles, surgeons can insert an instrument into a patient and see an animation that shows exactly where the instrument is going under the skin. The funding will be used to further develop the system and get it past FDA approval, which MediView expects to happen in 2021. The company has already used this system on five liver tumor patients in the first set of trials and started a new nine-patient trial in August 2019. The funding comes from Inside View, a Northwest Ohio venture group based out of Findlay, Ohio. Other investors include Plug and Play Ventures and the Northwest Ohio Tech Fund. • read more.
San Francisco, CA-based creator a health savings account (HSA) Lively raised $27M Series B. Lively is a Health Savings Account (HSA) platform for employers and individuals. It works alongside HSA compatible plans to help consumers optimize their healthcare spending and maximize their savings. The company intends to use the funds to further investments in technology, expand consumer tool offerings, and grow its team of professionals in healthcare, payments, and customer service. The round was led by Costanoa Ventures, with participation from Ally Ventures, Liquid 2 Ventures, PJC, Teamworthy Ventures, Streamlined Ventures, and Y Combinator. • read more.
Immertec raised $6M for its VR software for medical device training and sales. Founded in 2017, Immertec leverages its patented, 3D, live-streaming technology to broadcast fully immersive virtual reality video and overlays for training applications across a range of industries. Its flagship product, Medoptic, allows remote viewers to access and interact with operating room procedures — enabling training and observations in real-time, regardless of the participant’s physical location. The funding will be used to hire Silicon Valley tech talent and gives Immertec two years of runway. Benvolio Group in New York led the round with a seven-figure investment and was joined by local investors. • read more.
Biopharmaceutical company AZTherapies raised $26.3M Series C. AZTherapies is an advanced clinical-stage biopharmaceutical company developing novel therapies that aim to fundamentally change neurodegenerative disease progression, extending normal cognition and function and improving quality of life in the aging population. Proceeds from the financing round are expected to fund the completion of COGNITE, the company’s fully enrolled pivotal Phase 3 clinical trial, which is investigating the safety and efficacy of the company’s lead candidate ALZT-OP1 in patients with early Alzheimer’s disease, and is being conducted under a Special Protocol Assessment with the U.S. Food and Drug Administration. Proceeds are also anticipated to fund ALZT-OP1 pre-commercial efforts and the continued advancement of the company’s broad pipeline. This round was co-led by Spinnaker Capital and Cosine, with participation from new and existing investors, including DRADS Capital, IBS Capital, and Wexford Capital. • read more.
Denver-based Nymbl raised $1.55M for its fall prevention solution. The company has developed a smartphone solution that delivers personalized balance training to help older adults reduce their fall risk and remain independent. Through the Nymbl Training app, users are guided through dual-task training that combines mental and physical exercises to improve balance. The company will use the funds to scale its offerings in both the senior living and Medicare space. The round was led by Rockies Venture Club. • read more.
Location-based wellness platform Fitt completed an investment round. Founded in 2017, Fitt makes health and fitness more fun, social, and accessible through a unique approach to content creation and discovery. The organization has expanded to include hundreds of local contributors on the ground in 31 cities across the US, Canada, the UK, and Australia. Available on the web, iOS, and Android, the Fitt platform has become an innovative and trusted resource for a growing community of health- and fitness-seekers searching for nearby places, exploring topics, and discovering events. The company will use the funds for further content development, to expand to new locations and add more features to its platform. The round was led by Mountain State Capital with participation from Riverfront Ventures and MINDBODY, as well as continued support from previous investor TNC Ventures. The value of the raise was not revealed. • read more.
Behavioral health startup Octave raised $11M Series A. Octave is a evidence-based therapy practice and wellness community offering in-person and virtual coaching, group therapy and psychiatry, along with an array of content and assessment tools to support clients between sessions. Since opening its first office in New York in October 2018, the company has launched a number of new services, including group sessions for anxiety, LGBTQ patients, and expecting couples, and has also expanded virtual coaching nationwide, serving patients in multiple states and even internationally. Octave plans to increase staff therapists in the coming months and will also begin offering a variety of free classes for its members, from meditation to one-night workshops. The company also announced a partnership with Anthem Blue Cross of California to serve patients as an in-network provider. The round was led by Greycroft, with participation from Obvious Ventures. • read more.
Asset management company for hospitals Medinas raised $5M Seed round. Medinas is equipping hospitals with a cloud-based asset management platform that not only provides hospitals with user-friendly software to track and organize assets, but allows them to redeploy, sell or donate unneeded medical equipment with the click of a button. It will use the funds to expand sales and hire software development talent. Also, to further bolster hospitals’ asset management capabilities, Medinas is developing new software features that focus on inventory management, equipment redeployment and equipment maintenance management. The round was led by NFX, with participation from Precursor Ventures, Sound Ventures, FJ Labs and Bryan Frist. • read more.
XLerateHealth awarded $1.7M grants for healthcare innovation in under-resourced states. XLerateHealth (XLH) was awarded Phase II funding of $1.48M, plus an Administrative Supplement of $250,000, from the National Institutes of Health (NIH) to continue building the XLerator Network, one of four Institutional Development Award (IDeA) State region “hubs” supported by the Small Business Technology Transfer (STTR) program. The STTR program funds research and development partnerships between small businesses and academic institutions… The grant, managed by the National Institutes of General Medical Sciences (NIGMS), is a part of funding expected to total more than $3.6M for XLH and its partners through 2021. XLH’s partners on this grant include 24 Academic Institutions with the University of Kentucky serving as the Academic Lead. • read more.
Digital health insights provider AVIA raised $22M. The company is the leading partner for digital health insights, strategic guidance, and consulting services. Members of the AVIA Innovator Network solve pressing challenges with digital solutions that deliver outsized financial and clinical results. AVIA provides strategic focus, unique market intelligence, and proven resources that accelerate digital transformation throughout healthcare. This round of funding will enable the company to expand its coverage of new digital topical areas, services and markets. The round was led by First Trust Capital Partners, with participation from Sumitomo Corporation of Americas, Ziegler and a number of strategic investors and health systems. • read more.
Jerusalem-based Pepticom raised $5M Series A to use AI for drug discovery. Pepticom’s unique AI technology streamlines and significantly accelerates the ability of researchers to discover advanced peptide-based drug candidates. Peptides are used in various therapies, and are recognized for being highly selective and efficacious as well as relatively safe. The pharma industry has recently shown an increased interest in peptide research and development, leading to a resurgence of peptide drug candidates. The process of discovering new peptides with lifesaving potential, however, is still costly and time consuming. Pepticom’s AI technology enables the discovery of the most advanced peptide-based drug candidates by searching an enormous set of possible solutions, vastly reducing the risk of failure during development. The Chartered Group’s strategic investment will facilitate the development of new AI models to further increase molecular discovery efficacy while reducing risk for the next stages of development. • read more.
AppliedVR receives $2.9M NIDA grants to study VR as an opioid-sparing tool for pain. The company has been awarded two multi-year grants totaling more than $2.9 million from the National Institute on Drug Abuse (NIDA), part of the National Institutes of Health (NIH), to study virtual reality as an opioid-sparing tool for acute and chronic pain. The grants will enable AppliedVR to advance two clinical trial programs respectively with Geisinger and Cleveland Clinic, studying two of its virtual reality therapeutic platforms, RelieVRx and EaseVRx. The NIDA funded trials will help inform the Company’s regulatory pathway with the U.S. Food and Drug Administration (FDA). • read more.
Developer of the first AI-enabled synchronized healthcare software Viz.ai raised $50M Series B. Viz.ai’s flagship product, the FDA-cleared Viz LVO, leverages advanced deep learning to communicate time-sensitive information about suspected stroke patients straight to a specialist who can intervene and treat. It is now available in over 300 hospitals across the U.S. and the new funds will help the company expand to more disease states and geographies. The funding round was led by Greenoaks with participation from Threshold Ventures, CRV along with existing investors GV and Kleiner Perkins. • read more.
Path raised $5.4M for its SUD management and treatment solution. The company has developed what it says is the first integrated solution designed to treat and manage Substance Use Disorder (SUD) for employees and their families. Path helps companies roll out access to treatment at scale, while also reducing healthcare costs for companies. It is already talking to two Fortune 100 companies about deploying its service. The funding was led by Upfront Ventures, with participation from Sequoia Benefits, Radian Street Capital and angel investors including Barbara Wachsman, the former head of benefits at Disney; Amy Shannon, the former head of benefits at Chevron; and Howard Cherny, the former head of benefits at Cisco. • read more.
Medical note automation company Augmedix raised $19M Series B. Augmedix turns natural clinician-patient conversation into medical documentation, in real-time, so that clinicians can focus on what matters most ‐ patient care. The Augmedix platform is powered by a combination of proprietary natural-language-processing technology and medical documentation expert teams. Augmedix provides clinicians with hardware, smartphones or Google Glass, to securely stream the clinic visit to its cloud-based platform. It will use this fresh funding to accelerate product development, including automation capabilities, and to strategically scale its technology-enabled service across health systems and private clinics nationwide. The funding includes investments from Redmile Group, McKesson Ventures, DCM Ventures, Wanxiang Healthcare Investments and others. • read more.
Please note that this list represents only the digital health deals that caught our eye in the past 7 days. There may be other deals we are not aware of or those which we don’t think fit the “digital health” category.