Telehealth startup TytoCare raises $50M in oversubscribed Series D round extension
Artificial intelligence-powered telehealth startup TytoCare Ltd. said today it has raised an extra $50 million in an extension of a Series D funding round that brings its total funding to $155 million.
Insight Partners led the round, joined by new investors Tiger Global and Qumra Capital. Existing investors Qualcomm Ventures, Olive Tree Ventures and Shenzhen Capital Group Co. also participated in the round, which the company said was “significantly oversubscribed.” The new funds double the company’s valuation, coming just 10 months after it raised a previous $50 million.
The telehealth industry has been gaining traction since the start of the global COVID-19 pandemic last year, as social distancing requirements and concerns over visiting hospitals have prompted thousands of people all over the world to see their doctors by remote, instead of in person.
TytoCare differs from other telehealth firms in that it combines virtual doctor’s visits with a number of devices that patients can use to check their health. The company’s TytoHome Kit includes a connected stethoscope, a high-definition camera for evaluating dermatological issues, an infrared thermometer, an otoscope and a tongue-depressor adapter for the throat. The toolkit is designed to help people conduct a medical examination of themselves, aided remotely by a doctor, and covers most common conditions, the company says.
It’s a combination that has served the company well, if the numbers it presented today are to be believed. During 2020, TytoCare said its revenue jumped by 2.5 times, off an undisclosed base. The company says it’s partnering with more than 150 health organizations and insurers globally, and that more than 6,000 clinicians use its platform.
The telehealth market has attracted a lot of money since the pandemic began, and TytoCare is not the only startup to benefit. Last April, as the pandemic first started taking a hold in the U.S., startup Medici Technologies LLC raised $24 million in funding of its own, for example. Meanwhile, American Well Corp., which is a much more established provider of telehealth services, went public via an initial public offering last year. The market has seen consolidation too, with Teladoc Health Inc. acquiring Livongo Health Inc. in an $18.5 billion deal that was presented as a merger.
R “Ray” Wang, founder and principal analyst of Constellation Research Inc., told SiliconANGLE that TytoCare’s success is a demonstration of what is possible when you mashup telemedicine and remote care capabilities into a single platform. “This drives down the cost of care, improves access and allows patients more flexibility in finding the right doctor for their needs,” he explained.
Wang added that he thinks the telehealth market will attract yet more money, and perhaps there will be further consolidation too. “We will see a number of SPACs, like Health Assurance Acquisition Corp., that may end up rolling up a continuum of care in the market,” he said.
TytoCare co-founder and Chief Executive Dedi Gilad said that his company was on a strong growth trajectory even before the pandemic came about. “The pandemic significantly accelerated telehealth awareness, adoption and utilization worldwide, and current advances in AI-powered home-based clinical diagnoses are making virtual care even more personalized and effective for a wider population, as well as more use cases,” he said.
TytoCare said it will use the new funds to expand its presence in the U.S., Europe and Asia. The money will also be used to fund the development of new product capabilities, including more AI-based diagnostics tools and services, the company said.
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