Health Tech Funding Surges: Payer/Employer Startups Make 4 Major Funding Announcements in March

• **Health Tech Funding**: Several major funding announcements in the payer/employer space were made in March.
• Bethesda-based HiLabs raised $41 million in a Series B funding round led by Denali Growth Partners and Eight Roads Ventures.
• New York City’s Pelago secured $151 million in a Series C funding round led by Atomico, supporting substance use management programs.
• San Francisco’s Brightside Health raised over $100 million in a Series C funding round led by S32, focusing on telemental health services.
• New York City’s Healthee, an AI-powered employee benefits app, received Series A funding to scale operations and accelerate product development.

1. Health Tech Funding: HiLabs Secures $41 Million in Series B Round

In the fast-evolving landscape of health tech funding, payer/employer startups have been making significant strides. One notable announcement in March was made by Bethesda, Maryland-based HiLabs, a company that specializes in serving health insurers and harnessing the power of artificial intelligence to manage data effectively. HiLabs closed a substantial Series B funding round, securing a total of $41 million. Denali Growth Partners and Eight Roads Ventures led the investment, with F-Prime Capital also participating in the round. The funding injection is earmarked for scaling HiLabs’ provider solution across more health insurers and expanding its clinical solution, as shared by Amit Garg, the CEO and co-founder of HiLabs.

2. Pelago’s Series C Funding Round: Revolutionizing Substance Use Management

Another standout in the realm of health tech funding is New York City-based Pelago, a virtual clinic focused on substance use management. Pelago caters to employers and health plans, offering support to members dealing with issues related to tobacco, alcohol, and opioids. In its recent Series C funding round, Pelago raised a substantial $151 million. Leading the investment were Atomico, with participation from Kinnevik AB, Octopus Ventures, Y Combinator, Eight Roads, and GreyMatter Capital. The company plans to leverage this funding to expedite its product roadmap, enhance its continuum of care, and advance clinical research initiatives, as outlined in a recent news release.

3. Brightside Health’s Series C Funding: Transforming Telemental Health Services

San Francisco-based Brightside Health is making waves in the telemental health sector with its innovative approach to providing therapy and psychiatry services for individuals grappling with various mood disorders. The company’s Series C funding, led by S32 and featuring contributions from Kennedy Lewis, Time BioVentures, Anne Wojcicki of Redwood Pacific, ACME, Mousse Partners, and Triventures, has propelled Brightside Health’s total funding past the $100 million mark. With a focus on expansion into new markets and the development of new services, Brightside Health is poised to make a lasting impact on the mental health landscape.

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4. Healthee’s Series A Funding: Enhancing Employee Benefits with AI-Powered Solutions

New York City-based Healthee is disrupting the employee benefits space with its AI-powered app designed to streamline various aspects of healthcare management. In its recent Series A funding round, Healthee secured crucial support from key investors, including Fin Capital, Glilot Capital Partners, Group11, and TriNet. This funding infusion is set to facilitate the strategic scaling of operations, accelerate product development, and support expansion initiatives, according to a recent news release. Healthee’s innovative approach to employee benefits is poised to transform the way organizations support the health and well-being of their workforce.

The funding announcements made by payer/employer health tech startups in March underscore the growing importance and investment potential of companies operating at the intersection of healthcare and technology. These funding rounds not only provide a financial boost to these innovative startups but also signal a broader recognition of the value they bring to the healthcare ecosystem. As the health tech landscape continues to evolve, these companies are well-positioned to drive meaningful change and improve the delivery of healthcare services for individuals and organizations alike.