Rock Health Raises Third Investment Round, Bumps Startup Investments to $250,000

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Rock Health, a well known name in the digital health accelerator space, announced this week that it has closed its third investment round. The round was led by Bessemer Venture Partners and Kaiser Permanente, with participation from KPCB, Mayo Clinic, Montreux Equity Partners, and Great Oaks Ventures.

With just three years having passed since its launch, Rock Health has graduated four classes of digital health startups, making it one of the most active and influential startups in the industry. The company has invested in a total of 72 companies, of which 55 are still active. The group has gone on to raise an impressive $207 million in additional venture funding, and three Rock Health startups have already been acquired. Lift Labs, which makes a spoon for Parkinson’s Disease patients that counteracts the effect of tremors, raised $1.8 million before being acquired by Google in 2012. Sessions, a personalized fitness app, was acquired by MyFitnessPal in February 2014. Pipette, a remote patient monitoring tool that helps health systems monitor post-acute recovery through a smartphone app, was a member of Rock Health’s inaugural class and was acquired by Ginger.io just a year after its launch.

To help its pool of startups go on to raise larger secondary rounds, Rock Health has also announced some strategic changes that it will put into place. First, the company is upping its commitment to these startups from a $100,000 investment to a $250,000 investment. The move is designed to reassure other VC firms that might invest in the startup themselves, but should also give startups a bit more runway before they need to start fundraising their Series A. In addition to the much larger seed round, Rock Health says it will be much more selective when accepting applications. Currently, the accelerator program accepts an average of three percent of the startups that apply, an acceptance rate lower than any Ivy League university. However, Rock Health announced this week that it will move to heighten its standards so that it is only accepting the top one or two percent of startups that apply to the program. Collectively, Rock Health hopes that this will result in early stage investments in well funded startups that VC will get behind and lead to commercial success.

Rock Health is currently recruiting its fifth class, with applications due by November 20 for a slot in its January program.


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