Arcadia’s $125m debt vehicle heads digital funding roundup

Investor sentiment for companies operating in the digital health category is likely to be somewhat shaken by the bankruptcy of pioneer Pear Therapeutics, but there’s no sign yet of a slowdown in financing deals.

That said, one interesting facet of this latest round-up is that digital health companies appear to have started to tap into debt financing a little more, which may reflect weakness in the availability of venture capital backing.

Boston-based Arcadia, a healthcare data analytics platform company, has negotiated $125 million in debt financing from Vista Credit Partners that will be used to help meet what it says is growing demand for enterprise software that can “unlock […] the power of the vast amount of data that is captured in modern healthcare delivery and operations.”

The fast-growing company said that its analytics platform has grown its user base by 50% in the last nine months, while its Medicare Shared Savings Programme (MSSP) service has saved customers more than $1.3 billion.

Spring Health, billed as a digital mental healthcare navigation company, has closed a $71 million funding round from existing backers, according to a blog post, which says the funding has lifted its valuation to a whopping $2.5 billion.

The cash injection will give the company “additional flexibility to invest […] services alongside our path to profitability.” The New York company also said it had doubled its headcount last year amid a push for growth, and its services are now included in health plans that cover more than five million lives.

Memora Health has raised $30 million of investment in a round led by General Catalyst to help develop its software that aims to digitise and automate clinical workflows using SMS messaging services.

The San Francisco-based company says its approach reduces the workload of clinical care teams and improves patient experiences. Its platform provides 24-hour support to patients on a broad range of topics, including “a new mum looking for guidance on latching, a cancer patient trying to understand the side effects of their chemotherapy, or an older adult recovering from a knee replacement surgery at home.”

The round was joined by Northwell Holdings, NorthShore - Edward-Elmhurst Health, PagsGroup, and other strategic investors, said the company.

98point6 has raised almost $31 million – partially through borrowing – to help fund its recently announced transition from a provider of telehealth services to a licensed software company. The move follows the recently-agreed sale of the artificial intelligence virtual care division – which has around three million users – to Transcarent for around $100 million, including milestones.

Seattle-based 98point6 will now focus on licensing its software, which includes an AI-driven digital clinic, clinician console for handling appointments, and other patient care tools to healthcare providers who can use them in tandem with their own care teams.

The company says its software “answers the need for purpose-built technology created by physicians, for physicians, and is the culmination of work our front-line team of clinicians spent years perfecting.”

Finally, Oshi Health, a virtual care firm focused on gastrointestinal health, has closed a $30 million Series B round led by Koch Disruptive Technologies and with buy-in from existing investors Flare Capital Partners, Bessemer Venture Partners, CVS Health Ventures, Frist Cressey Ventures, and Takeda Digital Ventures.

The company – which provides diagnosis and integrated care for people with digestive conditions – said the new funding would be used to accelerate growth and scale its clinical team across the US.

The financing follows a partnership signed last week with Aetna, giving the insurer’s commercial members in six states access to the Oshi’s platform.