Health IT

Carrot brings in $25M to commercialize smoking cessation solution

JJDC led the round, while New York Life Ventures, Khosla Ventures, Marc Benioff, R7 Partners and Carrot founder David Utley also participated.

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Digital health company Carrot, which is focused on helping individuals quit smoking, has raised $25 million in a round led by JJDC, Johnson & Johnson’s strategic venture capital arm. Participation also came from New York Life Ventures, Khosla Ventures, Marc Benioff, R7 Partners and Carrot founder David Utley.

The Redwood City, California startup plans to use the money to commercialize Pivot, its smoking cessation platform.

The solution has four key components: an FDA-cleared mobile breath sensor that measures carbon dioxide in the breath; a personal dashboard for users to track their metrics; customized, evidence-based content; and personal coaching from someone trained in smoking cessation.

The Pivot program unfolds over six stages. Throughout the phases, participants are encouraged to learn about their smoking behavior and build motivation to quit. Eventually, they create, follow and sustain a quit plan.

In a statement, Utley, who also serves as Carrot’s president and CEO, said:

Given Johnson & Johnson’s expertise across its medical device, consumer health and wellness and pharmaceutical sectors, we are excited to have JJDC lead this round as we believe it takes a concerted healthcare approach to address the consequences of smoking on a global scale. We’re also pleased to have the funding of New York Life Ventures and the continued confidence of our existing investors.

The California company is teaming up with self-insured employers and health plans to offer Pivot to help their employees and members stop smoking.

Earlier this year, Carrot partnered with RedBrick Health, a Minneapolis-based health IT firm. Through the joint effort, RedBrick planned to offer some of its customers access to Pivot. Plus, RedBrick gained category market exclusivity to market Pivot through 2018.

Carrot isn’t the only company raising money in the smoking cessation space.

In September, New York-based erectile dysfunction startup Ro raised $88 million in Series A funding to launch a smoking cessation vertical called Zero. The offering includes a prescription, nicotine gum and a behavioral app to track progress and consult a physician.

Photo: artisteer, Getty Images

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