Digital health services were pivotal during the early stages of the Covid-19 pandemic. Between a rise in telehealth visits and the overall convenience and safety it offers all parties, it’s safe to say that healthtech startups are still in a good place to scale to meet the industry’s growing demand. Venture capital investors and experts agree. Last year, $29.1 billion were invested in healthtech startups — nearly double the $14.9 billion invested in 2020.
Healthie, a NYC-based telehealth and business management startup offering digital health services and asynchronous engagement with patients, is one player in the space cashing in on investment trends. On Tuesday, Healthie raked in $16 million in a Series A funding round led by Velvet Sea Ventures with participation from Greymatter Capital, Watershed, Builders VC and more than 60 angel investors.
Prior to its Series A, the NYC-based startup raised $1.9 million in pre-seed and seed rounds but chose not to raise additional funding until recently because it has been profitable since 2018, Healthie CEO and co-founder Erica Jain told Built In.
Jain said the startup decided to raise capital now due to the current investment landscape for healthtech startups.
“There’s this moment in time in digital health where Covid paved the way and accelerated the much overdue innovation for implementing and accelerating what healthcare should look like for the consumer,” Jain said. “We wanted to [be able to] build faster and over-invest, allowing our customers to take advantage of [the momentum] in digital health.”
With its new funding, Healthie plans to expand its product offerings and hire.
“I still believe that customers are the best investors. They push our team to build the best product, innovate and provide an incredible customer experience,” Jain said. “The reason we decided to raise [a Series A] was very intentional.”
Founded in 2016, Healthie is currently used in 25 countries and has processed $350 million in payments. Notable Healthie customers include Columbia College and the California Special Supplemental Nutrition Program for Women, Infants and Children. Healthie was also recently highlighted as a Built In Future 5 startup.
