Includes new investment from industry leaders Humana and Providence Health
San Francisco, CA (Sept. 16, 2015) – Building on the largest year of growth in the company’s history, digital health pioneer Omada Health announced today that it has raised $48 million in Series C funding in a round led by Norwest Venture Partners. Its strategic investors include two Omada customers and health care leaders – Humana Inc. (NYSE: HUM) and Providence Health & Services, as well as prior investors US Venture Partners, Rock Health, and Andreessen Horowitz, and new investors GE Ventures and dRx Capital.
Omada will use this funding to meet market demand, expand the company’s rigorous clinical research and publishing schedule, and drive continuous improvement and enhancement of Prevent, the company’s flagship program.Prevent is a digitally-based lifestyle intervention that helps individuals reduce their risk for obesity-related chronic diseases such as diabetes and heart disease. The program combines smart technology like a wireless scale pre-synced to a participant’s account, a proprietary health-related curriculum, on-demand access to a personal health coach, and a like-minded online peer network for support for those at the tipping point for chronic disease.
“At more than $500 billion a year, the cost of obesity-related chronic disease for employers, insurers, and our country is staggering. Prevent has been held to the highest clinical rigor, is proven to work, and can be scaled to deal with the size of this epidemic,” Omada Health CEO and co-founder Sean Duffy said. “The fact that this funding round includes not only world-class investors, but two customers who happen to be one of the country’s largest health insurers and one of the largest not-for-profit health systems, is a huge vote of confidence in the company, and in our ability to tackle a huge – and costly – health care problem.”
Omada works with employer and health plan customers to provide scalable, effective, and evidence-based behavioral interventions for those at risk for heart disease, diabetes, and other chronic conditions. Combining proven behavioral science and the power of social networking with cutting-edge technology and world-class design, Omada is delivering clinically-meaningful results for a tipping point population – those most at-risk for developing obesity-related chronic diseases. Omada operates on a pay-for-outcomes pricing model that eliminates risk for enterprise customers, and is helping drive the company’s growth in the marketplace.
“Omada’s published results have demonstrated that the company’s integrated on-line clinical coaching works as well as the in-person Diabetes Prevention Program,” said Casper de Clercq, a partner at Norwest Venture Partners. “We are confident that Omada can help the millions of individuals who are susceptible to chronic conditions like diabetes and cardiovascular disease. Our investment is driven by our enthusiasm for Omada’s demonstrated efficacy. The new capital will allow Omada to continue to expand and broadly deploy its programs.”
Busy Burr, Vice President of Innovation at Humana, added, “We’ve worked closely with the Omada team as we’ve deployed Prevent to our associates and members living with chronic conditions and those at risk for diabetes. We’ve seen first-hand how Omada works with us to identify those who need these interventions the most, and how it helps get them on the path the better health. That experience - and our confidence in this team - drove our decision to invest.”
This funding round comes as Omada is growing rapidly and continues to demonstrate that the company’s behavioral change programs work. Omada’s staff has grown from 75 to 185 employees over the past year. Since its founding, the company has enrolled more than 20,000 Prevent participants.
Earlier this year, Fast Company named Omada one of the 50 most innovative companies in the world. In March, Omada’s Prevent became one of the first digital programs to receive pending recognition from the Centers for Disease Control (CDC) for meeting the evidence-based standards for the National Diabetes Prevention Program. And in April, Omada became the first digital health company to publish peer-reviewed results demonstrating that participants in its program maintained significant reductions in body weight and average blood sugar levels two years after starting the program.
While Omada primarily works with health plans and self-insured employers – including Lowe’s, Costco, and Iron Mountain – Prevent has also achieved outstanding clinical results with veterans, as well as seniors enrolled through Medicare Advantage plans. Omada will soon being providing Prevent to Medicaid and safety net populations.
About Omada Health
Omada Health is a digital behavioral medicine company that inspires people to change the habits that put them most at risk for serious but largely preventable chronic conditions like heart disease and type 2 diabetes. The company brings world-class behavioral medicine to anyone with an Internet connection, using insights about social networking, gaming, and behavioral science to motivate changes in lifestyle. Backed by investors including Andreessen Horowitz and Norwest Venture Partners, Omada was named one of Fast Company’s 50 Most Innovative Companies of 2015. Omada has recently expanded Prevent curriculum to cover those at risk for diabetes, heart disease, and other obesity-related chronic conditions. Omada deliversPrevent through enterprise clients, including employers Lowe’s, Iron Mountain, and Costco as well as health insurers like Humana and Kaiser Permanente. To learn more, visit www.omadahealth.com orhttp://www.preventnow.com. You can follow Omada on Twitter @OmadaHealth.
About Norwest Venture Partners
Norwest Venture Partners is a global, multi-stage venture capital and growth equity investment firm that has partnered with entrepreneurs to build great businesses for more than 50 years. The firm manages approximately $5 billion in capital and has funded more than 575 companies since inception. Headquartered in Palo Alto, Calif., NVP has subsidiaries in Mumbai and Bengaluru, India and Herzliya, Israel. NVP makes early to late-stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. For more information, please visit www.nvp.com. Follow NVP on Twitter @NorwestVP.
For more information, contact:
Adam Brickman | (914) 548-3748 | adam@crosscutstrategies.com