Health Data Startup Raises $153 Million to Expand Offerings
(Bloomberg) -- Evidation Health raised $153 million in venture capital to expand its digital offerings that are designed to help people improve their own health while providing fodder for medical research.
The investment, led by OMERS Growth Equity and Kaiser Permanente Group Trust, more than doubles Evidation’s equity raised to date to $259 million, the company said. That brings its valuation to just over $1 billion, according to a person close to the company who asked not to be identified discussing private information.
Evidation’s platform, called Achievement, has more than 4 million people signed up through a smartphone app or website who get incentives to take actions to improve their health. Users can share their health and behavioral data with scientists and drugmakers, who use it for research on drugs, devices and medical conditions. In exchange, members receive rewards points that convert into cash or donations to preferred charities.
The next phase will focus on “allowing anyone to have evidence-supported guidance and actionable tools” to improve their health on their own, co-Chief Executive Officer Deborah Kilpatrick said in an interview.
The company also uses surveys and data from connected apps and devices to assemble a picture of people’s health and suggest ways to improve it. It’s not specific to any disease or condition.
“We’re saying, here’s a really easy way to start engaging with what’s going on in your everyday life,” said Christine Lemke, co-founder and co-CEO.
Founded in 2012, California-based Evidation has 220 employees. Existing investors B Capital and McKesson Ventures, the investment arm of drug distributor McKesson Corp., also participated in the latest round.
Evidation works with nine of the 10 largest biopharma companies, according to a statement. Its platform includes people from all 50 states and nine out of 10 U.S. ZIP codes.
While the business model has focused on contracting with companies for clinical studies, the company may have future arrangements with medical providers or entities paying for health care, the executives suggested.
“Evidation saw that we could build an evidence-generation machine first, which was necessary to provide these personalized journeys in an evidence-based way,” Lemke said. “So our first business model was very much about research.”
Participants agree to share their data at the outset, and then are separately asked to consent for its uses by researchers. Sometimes that additional layer of consent is required by research protocols, but Evidation has built it into its model.
“We believe that people should be asked for permission to collect data, and re-asked for permission to use it,” Kilpatrick said.
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