Wellth, a digital health startup that offers small financial rewards for completing health-related tasks, scooped up $20 million in Series B funding.

The round was led by SignalFire, with participation from former Evolent Health CEO Frank Williams and previous investors the Social Entrepreneurs’ Fund, CD Venture, Yabeo and the Partnership Fund for NYC.

WHAT IT DOES

Wellth works with insurers, providers and employers to offer an app that reminds users about daily health behaviors, like taking medications or monitoring blood glucose. When patients take a photo confirming they've completed tasks, they receive small financial incentives.

The company includes services for mental health concerns, cardiovascular disease, heart failure, diabetes, cancer, chronic kidney disease and COPD or asthma. Wellth said it will use the capital to improve the app's behavioral science engine and support its member base.

"At the core, we’re removing barriers and giving patients the motivation to do what’s best for their health," Matt Loper, cofounder and CEO at Wellth, said in a statement. "This mission is very personal to me, since I saw my own uncle struggle with behavioral change after a type 2 diabetes diagnosis.

"After he passed, I set out on a personal quest to understand why humans don’t do what we’re 'supposed to do' when it comes to our health. Our Series B funding allows us to continue to understand that crucial question, solving some of the biggest challenges within healthcare and impacting even more patient lives."

MARKET SNAPSHOT

Founded in 2014, Wellth last raised a total of $11.5 million in 2020, including a $10 million Series A announced in May of that year. 

The startup pitches its app as a more effective way for patients to build good habits around managing chronic conditions. According to the CDC, 60% have at least one chronic disease, and they're a major driver of the nation's healthcare expenditure. 

Managing chronic conditions is a common focus for digital health companies. Copenhagen-based Dawn Health recently partnered with pharma giant Novartis to develop tools for chronic conditions like multiple sclerosis, hypertension, cardiovascular disease and breast cancer.

DarioHealth, another chronic disease management platform, has recently added collaborations with virtual care company Amwell and Dexcom, maker of a continuous glucose monitor. Chronic care company Omada Health added behavioral health support to its list of programs last year. 

Juan Nanez will offer more detail in the HIMSS23 session "How Care Provider Access to Regional Data Reduces Hospital Readmissions." It is scheduled for Tuesday, April 18 at 11 a.m. – 11:30 a.m. CT at the South Building, Level 1, room S104.