Mountain View, CA — Livongo Health, the consumer digital health company focused on chronic conditions, announced a $52.5 million growth round. The new funding round is co-led by existing investor General Catalyst and international investment company Kinnevik and joined by Singapore-based EDBI, American Investment Holdings LLC, and Microsoft Ventures. All previous investors participated in the current round as well. This round positions Livongo to accelerate growth in diabetes management, expand to other chronic conditions, and move to international markets in 2017.
We heard from CEO Glen Tullman, who formed Livongo after 15 years as CEO of Allscripts. "I truly believe that we're at the beginning of a revolution in healthcare. We hear so much about healthcare policy debates today and, while those are very important, the most important impact we will see on our long-term health as a country, and around the world, is how we blend smart technology, mobile communications, findings from data science, and healthcare services to make it easier to stay healthy and get the care you need, often before you know that you need it! I believe Livongo's success to date is the beginning of a wave of innovative healthcare changes like we've seen in so many other industries, driven by smart technology, and I'm proud to be a part of a Company that is leading the way."
"Livongo is one of the fastest growing companies in our portfolio and we are happy to double down to help the team expand their market leadership," said Hemant Taneja, Managing Director at General Catalyst. "Additionally, we are excited to see Livongo expand their service to offer comprehensive support for their members' chronic needs beyond diabetes."
Livongo's program is demonstrating significant improvements in health outcomes for its members and cost savings for its clients. Livongo members spend more time-in-range in the first month of use and show a reduction in HbA1c within the first 90 days sustained to at least 180 days.1 A recent third-party study found that Livongo optimizes utilization and decreases diabetes-related medical costs across the covered population.2
"Livongo has really connected with our people who have diabetes," said Scott Kirschner, Director of Benefits Strategy at Iron Mountain. "Our people are using the product and love it. We're also seeing improved clinical results and cost savings, which have been documented by independent consultants. Livongo means healthier, happier, more productive employees and families, with reduced costs for their care. Pretty impressive."
Livongo is working to expand its solutions to support current members who have other chronic conditions. For example, 71% of people with diabetes have high blood pressure and 65% have high cholesterol.3 Managing multiple chronic conditions is complicated and most people with diabetes deal with this reality every day, something which Livongo intends to address.
To date, Livongo's growth has been driven by rapid adoption of its diabetes management solution among leading Fortune 500 companies as well as 4 of the 7 largest health plans in the U.S., the most innovative health systems, and 2 of the 3 largest pharmacy benefits managers.
Livongo is a consumer digital health company that empowers people with chronic conditions to live a better life. Livongo has developed a completely new approach for diabetes management that combines the latest technology with coaching. On a personal level, many of us have loved ones with diabetes and many of us have it ourselves, which helps us better understand our members.
1 Based on Livongo’s 2016 Clinical and Financial Outcomes Report and business reporting.
2 Third-party study based on comparison of two years medical and prescription claims data for active Livongo members compared to people with diabetes who did not participate in Livongo Program.
3 Centers for Disease Control and Prevention. National Diabetes Statistics Report: Estimates of Diabetes and Its Burden in the United States, 2014. Atlanta, GA: U.S. Department of Health and Human Services; 2014
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