Portland, Oregon-based Conversa Health, a virtual care and communication platform that helps health organizations stay in touch with their patients and customers, today announced that it has expanded its Series B funding round from $12 million to $20 million. The round is still co-led by Builders VC and Northwell Health’s venture arm Northwell Ventures. Additional investors include UH Ventures, the venture arm of University Hospitals and VC firms P5 Health Ventures, Epic Ventures, StartUp Health and Nassau Street Ventures, as well Genesis Merchant Capital and J-Ventures, which came in as new investors in this expanded round.
“There’s been a recognition, especially with COVID, that the need for automated and virtual — which are two big trends in healthcare — were on the horizon but now the horizon has been pulled in because of COVID and the healthcare system recognizes that that’s going to be required to be able to allow access for patients and improve both the experience for patients and providers, and get better outcomes and do it at lower cost,” Conversa CEO Murray Brozinsky told me.
Brozinsky actually believes that within the next decade, 80% of care will be done remotely. This will allow for more personalized and evidence-based care, but it will also require investments in automation.
“Conversa links providers’ EHRs and other patient data to best-of-breed interactive digital care pathways and clinical analytics engine to automate care management 24×7. This improves care plan adherence pre and post visit, reducing costs and generating better outcomes for patients,” said Builders VC partner and Conversa board member Mark Goldstein. “Conversa’s enterprise platform and library of digital pathways are used by providers to care for patients across their populations, as opposed to one-off point solutions. It fills an enormous gap in the market.”
Given the pandemic, it’s maybe no surprise that Conversa’s business also boomed. The number of customers the company its services has grown fourfold while its financial metrics are up 6x because a lot of its larger companies have expanded their use of the platform.
The team decided to expand the existing Series B round to help it capitalize on this momentum and to bring on more engineers in order to scale the platform. Brozinsky believes that the need for a platform like Conversa’s will remain after the pandemic ends. In addition, the company is also already rolling out support for vaccination programs in its service to help educate consumers but also help in monitoring efforts after people get their shots.
“Everything we’re hearing from health systems, they recognize that they need to be prepared for this to happen again, they still need to care for the core demographics that haven’t changed — this aging population — with an acute shortage of healthcare workers,” Brozinsky said. “So the need for the systems and these platforms is going to be more acute and the investment is not so much an additional cost but an enormous return.”