Welltok Raises $45 Million In New Funding, Acquires Silverlink

image

Denver-based population health startup Welltok has closed a $45 million funding round led by EDBI, Flare Capital, and Georgian Partners. The new round follows a $37 million Series D that closed in January, and a combined security and equity-based funding round of $21 million raised in May, bringing its total raised for 2015 to a staggering $103 million and its lifetime funding level to $130.2 million.

While $139 million is notably high, the company has been in operation for six years and has taken an acquisition-based approach to growth and development, which generally requires larger capital outlays than an organic growth strategy. Since its launch, Welltok has acquired: IncentOne (2013), an incentive-based consumer-engagement vendor; Mindbloom (2014), a gamification consumer-engagement vendor; Predilytics (2015), a data analytics vendor focused on consumer behavior; and Zamzee (2015), a consumer-engagement vendor focused on pediatric health and wellness. While financial terms for each of those acquisitions was left undisclosed, the aggressive pace of acquisitions has had a significant impact on Welltok’s funding needs, and helps to contextualize its aggressive 2015 fundraising.

Now, with $45 million in fresh capital, Welltok has acquired Silverlink, its third acquisition of 2015. Silverlink is yet another consumer engagement platform, bringing 14 years of experience and a sizeable customer base. The company helps health systems and payers run phone call-based outreach programs with automated dialers and personalized voice messages.

In addition to its ever-growing portfolio of consumer engagement tools, Welltok markets an internally developed patient-facing app that leverages IBM Watson to learn user’s behaviors and provide personalized health coaching support. The app reminds users about upcoming doctors appointments, overdue flu shots, and records workout preferences so that when users are travelling, the Welltok app can automatically research local running paths or yoga classes.

With everything it does, Welltok demonstrates that it is taking a consumer-focused approach to business development. Technology companies that insert themselves between consumers and providers are rapidly becoming the standard Silicon Valley business model, as Uber and AirBnB have demonstrated. With healthcare expenditures topping $303 trillion in 2014 and no clear leader in the consumer engagement race, Welltok and its investors are pushing hard to corner what could be an incredibly lucrative emerging market.


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

↑ Back to top

Founding Sponsors

Platinum Sponsors