One Medical Acquires Digital Health Startup Rise For $20 Million


Concierge provider chain One Medical Group announces that it has acquired digital health startup Rise for $20 million. Rise launched in 2013 with an app designed to provide one-on-one diet coaching and nutritional support for users trying to eat healthier and lose weight. The acquisition concludes the fast-paced lifecycle of Rise, which raised $4 million in VC funding before its acquisition, undoubtedly leaving early investors pleased with their return. Google Ventures, Greylock Partners, and Floodgate all participated in the startup’s seed round.

Rise approached app development from the perspective of offering a clinical service through its platform, rather than offering a purely technical solution like many calorie-counting and fitness-tracking apps typically do. Rise hired a team of nutritionists and fitness coaches, and committed to delivering personalized, one-on-one support to its users. Coaches used the Rise app to connect and engage with end users to check in with them and keep them motivated. The company monetized this platform through a monthly subscription fee that averaged $40 to $50 per month, a steep price in app store economics. Facing steep competition to gain traction among so many free alternatives, the acquisition benefits Rise in more ways than just financially. Greylock partner John Lilly explains, “It’s hard to build distribution for apps at all today. That’s one of the advantages One Medical has. They have this footprint in the real world.”

One Medical, which has raised $180 million in VC funding since its 2007 launch and counts Google Ventures as one of its investors, will integrate Rise’s services into its concierge care delivery platform. Though Rise does not plan to do away with its subscription fee, the association with One Medical will highlight it among a large group of One Medical customers that have already proven their willingness to spend money on technology-powered health services. This should help Rise build its customer base considerably.

Rise and its eight employee staff has relocated its headquarters to One Medical’s San Francisco office, where it will now work to integrate its offerings with the One Medical platform.

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