Livongo Health, a digital health company focused on patients with chronic conditions, has raised $105 million in a Series E round. The startup also unveiled a new partnership with Cambia Health Solutions, a nonprofit health insurance company.
Livongo utilizes connected devices and virtual coaching to assist patients with diabetes and hypertension.
The latest fundraise was spearheaded by existing investors General Catalyst and Kinnevik. DFJ, Merck Global Health Innovation Fund, Microsoft Ventures, Sapphire Ventures, Kleiner Perkins Caufield & Byers, Zaffre Investments and 7wire Ventures (all existing investors) also participated. Echo Health Ventures was the only new investor to take part.
“What was significant about it [is] it was a big step up from our last round,” Livongo CEO Glen Tullman said in a recent phone interview. In 2017, the startup raised $52.5 million. The year before, it brought in $49.5 million in Series C funding.
Tullman explained $105 million will be used for four primary purposes: growth; continued investment in data science; more integration with clients and partners; and the development of a comprehensive platform based on the needs of the whole person.
As for the company’s collaboration with Cambia, Tullman said the goal is to “redesign health to be more consumer-driven.”
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
The organizations will make Livongo’s diabetes solution available to Regence Blue Cross and Blue Shield in Idaho, Utah, Washington and Oregon. Together, they also plan to develop other solutions for conditions like hypertension and behavioral health.
Notably, Livongo’s only new investor — Echo Health Ventures — was created by Cambia Health Solutions and Mosaic Health Solutions, the investment arm of Blue Cross and Blue Shield of North Carolina.
“We added [Echo] because [it’s] a strategic investor,” Tullman said. “Our own investors would have taken the entire round, but we always like to add strategic investors.”
Looking ahead, Livongo intends to keep aiding individuals.
“What we’re really doing is helping more people,” Tullman noted. “First and foremost, that’s our objective because we’re a healthcare company.”
It’s also planning for continued growth, including expanding the number of conditions it treats. Tullman mentioned Livongo’s interest in diabetes, weight management and depression.
Photo: Livongo
