Doctor On Demand Raises $50 Million Series B To Accelerate Its Telehealth Services

image

San Francisco-based telehealth vendor Doctor on Demand announces that it has raised a massive $50 million Series B funding round led by Tenaya Capital, and with participation from new investors Qualcomm Ventures, Dignity Health, Jump Capital, and 23andMe founder Anne Wojcicki. Existing investors Rock Health, Venrock, Shasta Ventures, and Sir Richard Branson also participated in the round. Doctor on Demand is a graduate of Rock Health’s sixth class, gradating in the summer of 2014 and packaging and impressive $21 million Series A just six months later. Including its 2013 seed funding, Doctor on Demand has raised a total of $74 million in the last two years.

While Doctor on Demand’s funding has been impressive, the rounds it is closing are par for the course for telehealth startups lately. American Well raised an $80 million Series C in December 2014, bringing its funding total to $128 million since its 2006 launch. In September 2014, Teladoc raised a $50 million Series C, bringing its own total to $74 million. MDLive is in the same ballpark, having raised a $23 million funding round last year that brings its total raised to $50 million.

Among the doe-eyed health IT entrepreneurs promising to deliver on the triple aim of healthcare, telehealth vendors seem to have gained some genuine traction. Costs are a fraction of what a traditional office visit would be, and outcomes for non-urgent care has been consistently measured as equivalent to receiving face-to-face care. While some payers are still leery of covering telehelath services, worrying that the added convenience will only drive up utilization without reducing overall costs, employers are lining up to offer the supplementary service to their employees. Along with its funding announcement, Doctor on Demand just announced that it has signed its 200th employer customer, including its first Fortune 100 company, Comcast Cable. The company is also making slow but meaningful traction in the payer space, having signed UnitedHealth as a customer last year. In total, Doctor on Demand is available to 25 million citizens across the US through agreements with enterprises, and is available as a paid service to everyone else via its website or app.


Enjoy HIStalk Connect? Sign up for update alerts, or follow us at @HIStalkConnect.

↑ Back to top

Founding Sponsors

Platinum Sponsors