Technology-enabled diabetes management company Livongo Health has raised $52.5 million in new funding in a round co-led by General Catalyst, an existing investor, and international investment company Kinnevik. Other investors included Microsoft Ventures, American Investment Holdings, and EDBI, a Singapore-based fund whose portfolio includes WellTok, GoBalto, and Sotera Wireless. All previous investors also participated in the round.
As the presence of international investors might suggest, one goal of this round is expand into other markets around the world. The company also plans to accelerate growth of its diabetes business and expand into additional chronic conditions.
“Diabetes is a large, fast growing, and life-long condition that requires a comprehensive approach to lift quality of life and address patient needs,” Chris Bischoff, senior investment director at Kinnevik, said in a statement. “Livongo is a category-defining company and there is strong potential for Livongo to replicate their US success in Europe and other international markets. We are delighted to partner with Livongo to build a global leader in chronic care management.”
Livongo Health’s current offering, called Livongo for Diabetes, consists of connected devices, a smart cloud, and a virtual care team. The Livongo Meter serves as both a connected glucometer and a pedometer and will allow easy sharing of the data. It’s a standalone device with a color touchscreen that is cellular-connected. The offering also offers unlimited test strips at no extra charge.
The company plans to move beyond diabetes, starting with common comorbidities such as high blood pressure and high cholesterol, the company shared in a statement
“Our team is focused on empowering our members to live healthier lives, not just manage their chronic conditions. That means we have to address all of their health issues in a comprehensive way.” Livongo CEO Glen Tullman said in a statement.” In addition to diabetes, we’re focused on extending our program to support other chronic conditions like hypertension and to continue to deliver an experience that our members love while improving clinical results and lowering costs. This new funding will accelerate our investments in R&D and expansion of our rules engine from 10,000 to more than 100,000 rules, allowing us to completely personalize the experience our members have.”
Founded in fall 2014 by former Allscripts CEO Glen Tullman, Livongo has raised an impressive $140 million to date, including a $5 million strategic investment from Humana and backing from a who’s who of digital health backers including Merck Global Health Innovation Fund, Cowen Private Investments, Sapphire Ventures, Zaffre Investments, the investment arm of Blue Cross Blue Shield of Massachusetts, Wanxiang America Corporation, Kleiner Perkins Caufield & Byers (KPCB), and DFJ Venture.
Livongo says its diabetes program is now used by four of the seven largest health plans in the US and two of the three largest pharmacy benefit managers, and covers more than 3 million lives.