Livongo Health has raised $105 million more as the business of mobile monitoring technology to manage chronic conditions attracts big names in technology, health insurance and the investor community.
In the case of Livongo, the fast-growing startup said the new funding round is led by General Catalyst and Kinnevik. Also participating in the funding are Echo Health Ventures and existing investors DFJ, Kleiner Perkins Caufield & Byers, Merck Global Health Innovation Fund, Microsoft Ventures, Sapphire Ventures, Zaffre Investments, and 7wire Ventures.
It’s the latest financial endorsement of Livongo and the space generally. Last year, Livongo attracted more than $50 million in new funding to accelerate growth in diabetes management as well as growth managing other chronic conditions with its portfolio of apps, mobile technology and digital health programs to help people manage chronic conditions.
“It’s a very strong endorsement,” Livongo CEO Glen Tullman said of the more than $150 million raised in the last year. “Our investors are mostly internal guys so if they don’t see good stuff happening, they aren’t signing up.”
But investors like what they see with the business growing rapidly. Livongo’s roster of customers including large employers and health insurers “has crossed the 300 mark,” Tullman said. “We are making huge investments in data science.”
Health plans, technology companies and their investors in the space see the costs of diabetes as a significant driver of premium increases with more than 30 million Americans, or 9% of the U.S. population, suffering from diabetes, according to the American Diabetes Association. Another estimated 30 million Americans have diabetes but have yet to have it diagnosed, ADA statistics show.
In the last year, UnitedHealth Group announced a partnership with DexCom to launch a glucose monitoring program that uses a wearable device to help older Americans continuously manage their Type 2 diabetes via mobile technology. And Blue Cross and Blue Shield plans including Anthem, the nation’s second largest health insurer, have partnered with Alphabet-backed Onduo to monitor glucose levels of patients with diabetes using a wearable device the insurers hope will improve health outcomes.
Livongo on Tuesday also announced a new partnership with Cambia Health Solutions, which operates an array of health services across the country and owns Blue Cross and Blue Shield plans with more than 2 million health plan enrollees in Washington, Oregon, Idaho and Utah.
Investors say they are attracted by Livongo’s growth and recent expansion into new chronic care conditions like high blood pressure. “Livongo has become the market leader by providing a delightful, evidence-based approach for improving quality of life for consumers with diabetes,” said Hemant Taneja, Managing Director at General Catalyst. “With the launch of its new hypertension offering, the company is quickly becoming a platform that delivers comprehensive care for consumers with multiple chronic conditions.”