Welltok raises $33.7M to further development of CafeWell, expand into new markets

By Heather Mack
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Denver-based Welltok, the health management company that makes the CafeWell Health Optimization Platform, has raised $33.7 million in Series E funding. Additionally, the company secured a new debt facility that equips Welltok with $13 million of expanded borrowing capacity. The combined financing will be used for continued development of CafeWell, other complementary digital healthcare service offerings and expansion into new market segments.

This most recent funding round included a long, mixed list of new and existing investors including New Enterprise Associates, Bessemer Venture Partners, Emergence Capital, InterWest Partners, Sigma Partners, HLM Venture Partners, Flare Capital Partners, Trustmark, Qualcomm Life Fund, Hearst Health Ventures, Singapore-based EDBI, Okapi Venture Capital and Miramar Ventures. Welltok’s debt facility was provided by Silicon Valley Bank. 

Previously, Welltok raised $45 million in December 2015, at the same time the company acquired messaging campaign service Silverlink.  This brings Welltok’s total funding to at least $163 million.

“We have clearly defined and established the need for a consumer enterprise platform that connects individuals with the resources, benefits and support available to help them achieve and sustain their optimal health,” Welltok chairman and CEO Jeff Margolis said in a statement. “What continues to attract investors and customers is the maturity of our platform and services, and our ability to deliver an unparalleled personalized experience for consumers on behalf of their sponsors."

CafeWell lets population health managers guide and incentivize consumers to get the most out of their health and healthcare. The enterprise-level platform curates and connects consumers with the benefits and resources relevant and available to specifically to them, analyzing available metrics to figure out which channel and message to use to engage the consumer. From managing chronic conditions to finding the best plan to developing practices to prevent illness, the CafeWell platform works to assess the right strategy for each person based on their demographics and engagement. 

Welltok has steadily raised funding over the past few years, and was named an Inc. 5000 fastest-growing company in America for the second year in a row. The company has made several strategic acquisitions in addition to Silverlink, including the May 2015 acquisition of Predilytics, the October 2015 acquisition of kids’ activity tracking platform Zamzee, the March 2014 acquisition of app maker Mindbloom, and the October 2013 acquisition of IncentOne.