Omada Health, the Andreessen Horowitz-backed digital health company that helps employers and health plans avoid getting diabetes, heart disease, and other chronic conditions, announced today that it has raised $48 million in Series C funding. The round was led by Norwest Venture Partners, including strategic investment from two Omada customers – Humana, Inc. and Providence Health & Services, as well as prior investors US Venture Partners, Andreessen Horowitz, Rock Health and new investors GE Ventures and dRx Capital.
The Rock Health alum raised this round because of overwhelming market demand from current and potential enterprise customers, and will use the funding to meet that demand, continue to improve and personalize the Prevent program, and expand offerings to those in the critical tipping point population at-risk for chronic disease, but with enough time to reverse the trend through lifestyle changes.
Omada Health Prevent Program Overview
Prevent is a digitally-based lifestyle intervention that helps individuals reduce their risk for obesity-related chronic diseases such as diabetes and heart disease. The program combines smart technology like a wireless scale pre-synced to a participant’s account, a proprietary health-related curriculum, on-demand access to a personal health coach, and a like-minded online peer network for support for those at the tipping point for chronic disease. While Omada primarily works with health plans and self-insured employers – including Lowe’s, Costco, and Iron Mountain – Prevent has also achieved outstanding clinical results with veterans, as well as seniors enrolled through Medicare Advantage plans. Omada will soon being providing Prevent to Medicaid and safety net populations.
To date, Omada had already enrolled 20,000 participants from self-insured employers and health insurance plans such Costco, Iron Mountain, Lowe’s, Humana, and Kaiser Permanente. The company plans to add 10,000 additional participants before the end of this year, and to reach hundreds of thousands by the end of 2016. Omada’s staff has grown from 75 to 185 employees over the past year.
Omada is led by co-founder and CEO Sean Duffy – a former Google employee with an undergraduate degree in neuroscience, who enrolled in Harvard’s MD/MBA program before dropping out to found the company. Omada works with employer and health plan customers to provide scalable, effective, and evidence-based behavioral interventions for those at risk for heart disease, diabetes, and other chronic conditions. Combining proven behavioral science and the power of social networking with cutting-edge technology and world-class design, Omada is delivering clinically-
“At more than $500 billion a year, the cost of obesity-related chronic disease for employers, insurers, and our country is staggering. Prevent has been held to the highest clinical rigor, is proven to work, and can be scaled to deal with the size of this epidemic,” Omada Health CEO and co-founder Sean Duffy said. “The fact that this funding round includes not only world-class investors, but two customers who happen to be one of the country’s largest healthinsurers and one of the largest not-for-profit health systems, is a huge vote of confidence in the company, and in our ability to tackle a huge – and costly –health care problem.”
