In-person health care startups launched before the pandemic are getting their dues.
Patient21, a Germany-based health care platform, announced on Monday it raised $108 million, according to Sifted. The company plans on using its funding to expand out of Germany.
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Israel-based venture capital firm Pitango, which focuses on health care investments, led the Series C round. The round was a mix of equity and debt, with 70% of the funding coming from equity and another 30% coming from debt. Luxembourg-based IPF Partners supplied the debt.
Patient21’s slew of in-person health care platforms shifts the paradigm away from most telehealth companies. Instead of providing online-only services, Patient21 aims to update the in-person experience by making it easy to book appointments, receive bills and check-in online. Patients are connected with dozens of dental clinics, womens’ health organizations and general practitioners.
The company’s model was pretty innovative in 2019, when it was founded. Then the pandemic happened.
When telehealth took over
When health care organizations were overrun with COVID-19 patients, many doctors adopted telehealth solutions to consult with low-risk patients. Many venture firms and health care institutions invested in telehealth-specific solutions during this time. Between 2019 and 2020, funding into telehealth increased by a whopping 352%, from around $479 million to more than $2 billion. The number of startups funded increased by 78%, according to Crunchbase data.
Startups like Carbon Health, One Medical and Sameday Health championed digital-savvy telehealth services in the U.S. Patient21 CEO Chris Muhr told Sifted, “You have no idea how much shit I had to deal with in the first two years.”
In reality, companies like Sameday Health aren’t that different from Patient21. While Patient21 partners with existing clinics and Sameday Health owns theirs, both have created a digital experience to make it easier to find health care records and make appointments.
The hybrid health care model has only become more popular. California-based Kiira Health, a telehealth clinic geared toward women, opened its first clinic in Los Angeles last year. Poland-based Jutro Medical raised $7 million in 2021 for a telemedicine and in-person clinic offering.
Illustration: Dom Guzman
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