Digital Health Investment Maintains Momentum in 2015

by Fenwick & West Life Sciences Group

Digital health investment is off to a healthy start in 2015 with our friends at Rock Health reporting more than $630 million invested in the first quarter. Fenwick clients Augmedix and Centrillion Technology Holdings received investments that were among the 15 largest of the quarter. Clients Evidation Health and Eligible also raised money.

The largest investment of the first quarter was Health Catalyst’s $70 million Series D round. The Salt Lake City-based company develops healthcare software that combines technology solutions with clinical expertise. Investors in the round included CHV Capital, Epic Ventures, Kaiser Permanente Ventures, Leavitt Equity Partners, Norwest Venture Partners, Partners HealthCare, Sands Capital, Sequoia, Sorenson Capital and Tenaya Capital.

The second largest investment of the quarter was a $50 million Series E investment in a digital contract research organization called Clinipace Worldwide, which develops technology-amplified CRO services geared to the needs of venture-backed, mid-tier biopharma companies. Investors included Harbert Venture Partners, Hatteras Venture Partners, Mario Family Partners, Morgan Stanley Expansion Capital, Virgo Investment Group and Crestline Investors.

The third largest investment of the quarter was a tie between Advance Health and ClassPass, which both raised $40 million. Advance Health, a Virginia-based company that combines mobile workflow technology and in-home care providers to deliver health risk assessments and chronic care management services, took in $40 million in a growth equity investment from Noro-Moseley Partners and Summit Partners.

And New York City-based ClassPass, which offers a membership program for fitness classes across multiple gyms and studios, raised $40 million in a Series B financing from General Catalyst Partners and Thrive Capital.

The fifth largest investment of the quarter was in San Mateo-based Collective Health, a cloud-based employer self-insurance platform, which raised $38 million in a Series B round from investors Formation 8, Founders Fund, NEA, Redpoint, Rock Health, RRE Ventures and Subtraction Capital.

In the sixth largest investment of Q1, Redwood City-based HeartFlow, which provides non-invasive assessment of coronary artery disease, raised $35.88 million in a Series D investment from US Venture Partners, Capricorn Investment Group, Sandbox Industries and HealthCor Management.

Utah-based Imagine Health received the seventh largest investment of the quarter, a $21 million Series A round. The company matches employers with large concentrations of employees in a single geographic area with custom-built teams of healthcare providers. HLM Venture Partners and Trident Capital participated in the round.

The eighth largest investment was in Modernizing Medicine, which raised $20 million in a Series D financing from investors that included IBM. The Boca Raton-based company has developed a cloud-based specialty-specific EMR system with a large library of medical content.

The ninth largest investment of the quarter was Charter Life Sciences’ $19.26 million Series B investment in big data company Health Fidelity, a San Mateo-based company that helps healthcare organizations address risk and quality in value-based payment models.

Another Silicon Valley-headquartered company and Fenwick client, Palo Alto-based Centrillion Technology Holdings, a genomic and bioinformatics solution provider, received a $19.2 million private equity investment from Grand River Capital Management in the tenth largest investment.

The eleventh largest was in OrthoSensor, which has developed a smart orthopedics device that provides real-time information about implant performance. The Florida-based company raised a $19 million in a Series C round with participation from Bridger Healthcare, Tullis Health Investors and Ziegler Medtech Equity Partners.

Chicago-based Apervita, a secure self-service platform for health analytics, received $18 million in a Series A financing in the twelfth largest investment of Q1. Investors included Pritzker Group Venture Capital, Baird Capital Partners, GE Ventures and MATH Venture Partners.

In the thirteenth largest investment, diabetes management solution provider Glooko received a $16.5 million Series B investment from Canaan Partners, Medtronic, Samsung Ventures and The Social+Capital Partnership.

Ranked fourteenth among Q1 investments Fenwick client Augmedix raised $16 million in a Series A round. The Menlo Park-based company provides medical professionals with a Google Glass powered electronic health record solution to help rehumanize healthcare. DCM Ventures and Emergence Capital Partners participated in the round.

Finally, rounding out the top 15 investments of the first quarter of 2015, New York City-based Noom, which develops fitness programs for smartphone users, raised $15.15 million in a Series B financing from RRE Ventures and TransLink Capital.

This article was first published on the Network on May 1, 2015.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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