Included additional capital from existing investor AXA Venture Partners, and new investments from Esplanade Ventures and the Portfolia Active Aging and Longevity Fund
New York, June 19, 2020 - Wellth, a digital health platform designed to improve treatment adherence using behavioral economics, announced today that it has closed $1.5M in additional capital to their Series A round which was announced May 6, 2020. The additional capital included additional capital from existing investor AXA Venture Partners, and new investments from Esplanade Ventures and the Portfolia Active Aging and Longevity Fund.
“Wellth is thrilled to partner with these two new investors to accelerate our growth into new and emerging markets. We are looking forward to partnering with Esplanade Ventures to introduce Wellth to global markets. Portfolia's Active Aging & Longevity Fund, a women-led fund, provides critical perspective on innovative solutions for women as they inform $5-15 Trillion of US spending and are often the leaders when considering options that promote better health and longer life for themselves and their families. Combined, these two new investor perspectives will accelerate our growth,” said Matthew Loper, CEO and Co-Founder of Wellth."
Failure to comply with prescribed care plans is one of the costliest problems in healthcare, leading to diminished health outcomes and increased care utilization. In the U.S. alone, half of patients with chronic conditions do not adhere to their medications, resulting in $300B of preventable costs to the healthcare system a year. This problem is only getting worse, with chronic conditions such as diabetes, heart disease, and COPD becoming more prevalent every year. While others have tried to boost adherence with technology, reminders, and coaching solutions, Wellth is a pioneer in applying the concepts of behavioral economics to create motivation and improve population health at scale.
Wellth members receive financial incentives, nudges, and behavioral reinforcements to establish healthy, lasting habits. Once enrolled, members use Wellth’s platform to submit scheduled check-ins aligning with their care plans. Check-ins, typically completed daily, require users to submit a picture of their target behavior at a set time (e.g., medications placed in the palm of their hand, glucometer or blood pressure cuff readings). These check-ins are immediately processed by Wellth’s AI technology for verification, and insights can be relayed directly to care teams. Members get a fun, easy, motivating experience along with instant gratification in keeping their endowed daily amount, which they “cash out” at milestone intervals throughout the duration of their program.
While patients usually intend to adhere to care plans and build healthier habits, the complexity of human motivation all too often stands in the way. By bridging the intent-to-behavior gap with frequent financial rewards for completing an action, Wellth has demonstrated the ability to create long-lasting results. Even when selecting for previously nonadherent patient populations, Wellth members demonstrate 89%+ average care plan adherence over a 12-month period, generating a 2-6X ROI to Wellth’s customers. These shifts in behavior change have resulted in significant improvements to clinical and financial outcomes. By utilizing the Wellth platform, customers have seen results such as a 45% reduction in readmission rate after heart attacks, a 92% decrease in avoidable emergency department visits, and a 1.3 reduction in HbA1c levels amongst high-risk diabetics. Wellth’s customers have also achieved a Member NPS of 88. To date, Wellth has predominantly focused on underserved and complex patient populations that tend to have the highest nonadherence rates and make up 80% or more of health care costs within a population.
“We are very excited to be part of Wellth’s innovation in the complex patient adherence space,” said Ella Berlyand, Principal at Esplanade Ventures. “It’s impressive to see how the team’s game changing combination of behavioral economics with digital health tools drives improved outcomes for the most vulnerable chronic patient populations.”
“We are excited to support Wellth as they scale their success in sustaining behavior change among patients who are difficult to engage and motivate”, says Dr. Christina Jenkins, investment Lead Partner for the Portfolia Active Aging & Investment Fund. “We've seen scores of similar companies, and Matt and his team are doing an outstanding job cracking the code when it comes to aligning the incentives of patients, providers, and payers in a way that meaningfully improves health, costs, and the experience of those who face multiple challenges to their health. This investment aligns perfectly with our fund’s commitment to invest in companies that positively impact well-being and support an improved aging experience.”
About Esplanade Ventures
Esplanade Ventures is an early-stage digital health venture fund focused on high growth patient centric solutions that drive the digitization of healthcare, consumer medtech and improved health outcomes. Formed by the founders of Medisys Health Group and Persistence Capital Partners, our team creates value using deep healthcare knowledge, entrepreneurial experience, extensive network, active strategic direction, and key partnerships through distribution channels.
Portfolia Funds are professionally managed venture capital funds designed to aggregate sophisticated individuals, especially women, backing innovative companies for returns and impact. Portfolia focuses on opportunities in high-growth segments that are often overlooked by traditional venture funds in areas such as women’s health, active aging, food and ag tech, inclusion and sustainability.
About the Portfolia Active Aging & Longevity Fund
Portfolia’s Active Aging & Longevity Fund is focused on emerging knowledge and solutions that will improve longevity and vitality, as well as new technologies and approaches that enhance the aging experience for those 50+ (as well those caring for the elderly). It is led by a world-class team of highly sophisticated and experienced investors who are leaders in their respective fields, as venture capitalists, angel investors, and innovators.