COVID-19 has simultaneously highlighted both the drawbacks and opportunities of the healthcare system globally. In 2021, the global digital health funding took off with a 79% jump in funding to over $57B compared to $32B in 2020, reports CBInsights.
The record-setting growth was driven by digital therapeutics and mental health technology, both of which saw doubled capital inflow compared to 2020.
Digital health startups offering mental health maintained their spot as top fundraisers. One such company that closed another round of funding is none other than Berlin’s Ada Health.
Raised $30M
The German digital health company closed its Series B round at $120M by raising a $30M extension round from Farallon Capital, Red River West, and Bertelsmann Investments.
The latest capital round comes nine months after raising $90M in Series B round last May, led by Leaps by Bayer with further investments from Vitruvian Partners, Inteligo Bank, F4, and Mutschler Ventures.
Ada also announces that Schroders Capital has become a major investor after acquiring secondary shares for over $30M through public and private vehicles.
Fund utilisation
The capital injection will enable Ada to accelerate its growth and strengthen its presence in the US, following high interest and traction in that market.
Daniel Nathrath, CEO and co-founder of Ada Health, says, “As a company, our goal is to improve healthcare outcomes for more than 1 billion people around the world. Today’s investment will enable us to double down on our growth in the US and in other key geographies, while continuing to develop our suite of AI-powered solutions, strike new partnerships, and create a truly personalized operating system for health.”
Further, the Berlin-based company plans to build on its AI capabilities by developing a personalised operating system for health, connecting multiple external data sources to provide users with actionable insights and a holistic, 360-degree view of their health journey.
Improve human health
Established in 2016, Ada is a global health company created by doctors including former NHS doctor Claire Novorol to improve human health by transforming knowledge into better outcomes.
The company’s health assessment and care navigation platform combines medical knowledge with AI to help users understand their symptoms and navigate safely to the right care at the right time.
“Every three seconds, someone turns to Ada for personal health guidance,” claims the company. To date, Ada’s app has completed over 26M assessments, earning 300,000 five-star ratings worldwide.
Further, the company also provides enterprise solutions to a wide range of partners across health systems, insurers, and life sciences.
Investors
Bertelsmann Investments (BI) is the global venture capital arm of Bertelsmann, a media, services and education company. The startup and fund network of Bertelsmann Investments currently consists of almost 300 active investments.
Jörn Caumanns, CFO Bertelsmann Investments (BI), says: “We are very excited to partner with Ada as one of the leading European players in digital health. We are impressed with the quality of its best-in-class health assessment and care navigation platform and its future growth options. Digital health is a sector that we intend to expand and Ada is one of BI’s first investments in this space.”
Red River West (RRW) is a growth stage VC fund that supports the European tech companies to win in the US by providing game-changing hands-on support.
Antoine Boulin, Founding Partner at Red River West based in California, adds, “We’re impressed with the commercial traction that Ada has achieved in the US, especially as they’ve done it with a minimal presence here so far. As part of the support we offer, they’ll benefit from our exclusive network of entrepreneurs who have created more than $100B in cumulated value. There is no doubt that with this type of support and the best product in its category Ada will continue its spectacular growth in the US and globally.”
