Lemonaid Health expanding services with $33M, Sun Life invests in Dialogue Technologies and more digital health funding news

Also: DarioHealth announced $28.6 million private placement transaction; StuffThatWorks launches with $9 million seed funding.
By Dave Muoio
02:06 pm

Lemonaid Health, a San Francisco-based telehealth platform and provider, announced today $33 million in Series B funding. The new round was led by Olive Tree Ventures, and included Artis Ventures, Correlation Ventures, Hikma Ventures, Sierra Ventures and other unnamed backers. This latest round brings the company's fundraising total to $55 million.

Lemonaid said it will be using the new funds to increase the number of medical professionals under its roof, and to expand its offerings in asthma, hypertension, Type 2 diabetes and additional mental health care. And although it was originally focused on D2C telehealth, the company also highlighted its increasing work with the existing healthcare system.

"As more consumers have turned to telehealth in the last six months, we’ve seen significant growth in demand for our online services," Paul Johnson, CEO and cofounder of Lemonaid Health, said in a statement. "With the additional financing, we will be able to help even more patients get the care they deserve and expand our services in partnership with other healthcare providers.”

Canadian telemedicine provider Dialogue Technologies announced a $43 million financing round, the core of which was a $32.7 million equity investment from Sun Life that gives the firm a minority ownership stake. Other participants in the raise included prior investors Caisse de dépôt et placement du Québec, Portag3 Ventures, White Star Capital, HV Holtzbrinck Ventures, First Ascent Ventures and Walter Ventures.

The company did not specify how the funds would be used, but noted rising demand for its service and Sun Life's rollout of Dialogue's virtual care service in March.

"The combination of innovative technology and the necessity of social distancing during the pandemic has rapidly changed the virtual health care landscape," Dave Jones, SVP of group benefits at Sun Life Canada, said in a statement. "Our investment in Dialogue represents Sun Life's commitment to helping Canadians live healthier lives through access to health care, whenever and wherever they need it. This investment is our next step, as we continue to innovate for our Clients and empower them to manage their health and well-being." 


Mobile glucose management system maker DarioHealth announced today a $28.6 million private placement transaction that sold nearly 3 million shares of common stock, and to certain investors pre-funded warrants to purchase about 825,000 shares at a fraction of a penny each. The public company said that it would use the capital as it expands from D2C to B2B2C.

“We are pleased to have the confidence of our largest shareholder and several new highly regarded healthcare investors as we expand our commercial to manage existing and anticipated near-term agreements with health care payers,” Erez Raphael, CEO of Dario, said in a statement. “The adoption rate of digital therapeutics has been accelerated by the current pandemic. Dario’s efficacious, value-oriented solution is well-positioned to compete in this largely untapped U.S. market.”

Immertec, a virtual reality surgical training company, has secured $6 million in an extension to its Series A raises from last fall, CrunchBase News reports. The extra funds were raised from Revolution's Rise of the Rest Seed Fund, Benvolio Group and PAR. 

The company told the outlet that these new funds will help expand into new areas and hire new staff, among which would be a COO. 

StuffThatWorks, a community platform that uses AI to encourage patients to share their treatment experiences, launched last week on the back of a $9 million seed funding announcement. Bessemer Venture Partners, 83North and Ofek Ventures all contributed.

The startup's platform crowdsources personal experiences to derive a broad characterization of a disease and, with enough entries, rank treatments by effectiveness in subgroups and in individuals. The company says that it had nearly 180,000 contributors while it was in stealth mode.

“With more than half of the world’s populations suffering from at least one chronic condition, chronic illness is a rapidly growing global epidemic," Adam Fisher, partner at Bessemer Venture Partners, said in a statement. “We believe that StuffThatWorks can not only help millions of people get access to valuable knowledge on treatment effectiveness but also disrupt and innovate the way data from patients in the real world is collected and analyzed today.”

LuminDx, maker of a smartphone app to help frontline providers identify likely skin conditions, closed a $2 million seed financing round early last week. It was led by Argon VC, with participation from institutional investors Flare Capital, Good Growth Capital, Techstars and TBD Angels, as well as from angel investors Andy Palmer, Bob Davoli, Esther Dyson and William Crawford.

The startup's tool uses machine learning and computer vision to compare a presenting patient's skin with a wide repository of logged images.

“Our goal is to help transform the dermatology field and assist primary care physicians and other providers to quickly and appropriately triage patients. LuminDx intends to improve outcomes for patients and accelerate those patients needing specialty care, so every patient gets the right care at the right time,” Susan Conover, CEO of LuminDx, said in a statement. “Closing our oversubscribed seed round allows us to access large scale image collections of skin conditions, improve our platform’s AI accuracy to the level of a dermatologist and strategically expand our team.”


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