Health IT, Startups

Welltok raises $25 million to expand CafeWell tools

Welltok, which uses gaming and machine learning to help people manage their health, has raised […]

Welltok, which uses gaming and machine learning to help people manage their health, has raised fresh capital as part of an effort to shift the company to be more consumer driven and expand into new market segments, according to a company statement.

Update In response to emailed questions, Welltok CEO Jeff Margolis talked about its plans for working with payers and providers.”We are looking to expand our offerings by targeting new segments within the payer market and partnering with innovative health providers who are seeking to optimize the health of their populations. Our vision of connecting consumers with personalized activities to optimize their health and reward them for doing so is converging with the market’s drive to get consumers – not just patients – more involved and accountable in their own health.”

Bessemer Venture Partners led the $25 million fundraise and secured a board seat. It plans to raise an additional $12 million by the end of the year with more backers. Since the company began a collaboration with IBM’s Watson unit and acquired Mindbloom, it’s been working to do more for end users as a personal wellness coach. It also uses incentives like reducing premiums if users get tests they need as they age, for example, a bone scan for osteoporosis.

Commenting on how the company was integrating with Mindbloom since the acquisition, Margolis said: “The team has already made significant contributions in advancing our platform, and their expertise in user-centered design has been invaluable as we continue to evolve our products. We built out a new office in Seattle and are looking forward to expanding our footprint in the Pacific Northwest.”

Its CaféWell platform organizes health and condition management programs, apps, communities and tracking devices. It creates a personalized health itinerary for each consumer based on their health status, benefits and goals

One of the considerations in shaping incentives, as Welltok vice president of product development Travis McElfresh observed in an interview earlier this year, is the balance between pushing someone to do activities they like, for example, but making the task attainable. “If you make something too hard, then people lose interest. But it can’t be too easy.”

Welltok raised $25 million at the start of the year as part of a Series C round that included IBM Watson, Qualcomm Ventures and New Enterprise Associates.

Update: This story has been updated following emailed responses to questions from Welltok CEO Jeff Margolis

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