Omada Health Closes $23 Million Series B Financing Led by Andreessen Horowitz
Omada's Digital Therapeutics Aims to Slash the Billions Spent Annually on Preventable Chronic Conditions, Focused First on Diabetes
SAN FRANCISCO, April 9, 2014-- Omada Health, a pioneer in the emerging field of digital therapeutics, today announced it has closed $23 million in Series B financing led by Andreessen Horowitz, with participation from Kaiser Permanente Ventures and existing investors including U.S. Venture Partners and The Vertical Group. In addition, Andreessen Horowitz general partner, Balaji S. Srinivasan, will be joining Omada Health’s board of directors.
Omada is focused on creating and delivering digital health programs that achieve meaningful clinical outcomes and help participants reverse or avoid costly chronic disease or its complications. The Omada team is an interdisciplinary group of clinicians, designers, and technologists from Google, Amazon, IDEO, Harvard, and Stanford who are passionate about creating accessible, effective technology to prevent disease. By applying the company’s dual heritage in medicine and design, Omada is reinventing the way complex diseases are treated through evidence-based digital programs that delight users and sustain long-term engagement.
“We’re caught in an unacceptable paradox: despite staggering technological advances in nearly every aspect of our lives, for the first time in history we find that preventable, chronic disease now kills more people than infectious disease,” said Sean Duffy, CEO and co-founder of Omada Health. “Omada’s mission is to inspire people to alter the habits that place them at risk for serious but preventable conditions. This vote of confidence from Andreessen Horowitz, combined with the work we’re already doing for major organizations like Blue Cross Blue Shield Louisiana and Stanford Hospital, reinforces our belief that consumers are ready for health programs that are rooted in science and tangible outcomes, yet are designed and delivered digitally as natural extensions of how we live today.”
Click here to read Sean Duffy’s post, “What If A Doctor Could Prescribe Behavior Change?” for his perspective on the news.
Click here to read the post from Balaji S. Srinivasan, General Partner, Andreessen Horowitz, for his firm’s perspective on the news.
3 Out of 4 Americans Projected to Die from Preventable, Chronic Diseases
Data shows three out of four Americans will die prematurely from preventable lifestyle-related chronic conditions. Given that reality, Omada believes the future of healthcare lies in effective, long-term behavior change as a critical complement to traditional medicine.
The company’s flagship product, Prevent, is the first-ever online diabetes prevention program for employees and the general public, based on the CDC's National Diabetes Prevention Program (DPP). One in three American adults have prediabetes (the clinical precursor to type 2 diabetes), and without lifestyle changes to improve their health, 15% to 30% of those will develop type 2 diabetes within five years. Further, diabetes is a major contributor to U.S. health care costs, crippling both corporate bottom lines as well as consumers’ wallets. The American Diabetes Association reports diabetics incur average medical expenditures of about $13,700 per year, of which about $7,900 is attributed to diabetes. People with diagnosed diabetes, on average, have medical expenditures approximately 2.3 times higher than what expenditures would be in the absence of diabetes. Data from UnitedHealth shows healthcare spending for diabetes or prediabetes will reach $500 billion annually by 2020. However, an Urban Institute report indicates the U.S. could save up to $191 billion over the next decade if DPP programs like Prevent were widely used, with the majority of savings going to Medicare and Medicaid programs.
The 16-week online Prevent program is clinically proven and evidence-based to conform to the best possible treatment option for diabetes prevention. Based on behavioral change science, Prevent integrates seamlessly into everyday life, keeping participants fully engaged through program end, and often beyond. Prevent’s digital programs are guided by dedicated health coaches and community social support, meaning every participant has real people, in real-time, monitoring their progress and offering 24/7 feedback and ensuring accountability. And Prevent is outcomes based with program cost directly tied to patient success.
About Omada Health
Omada Health is pioneering a new class of medicine called digital therapeutics. Omada believes the future of healthcare for the 75% of Americans who will die prematurely from preventable lifestyle-related chronic conditions lies in behavior change, not simply traditional medicine. Omada drives positive health outcomes through a combination of immersive digital experiences tied to real, clinical outcomes. The company’s flagship product, Prevent, is the first-ever online diabetes prevention program for employees and the general public and is based on the landmark Diabetes Prevention Program (DPP) clinical trial. Prevent customers include major organizations, integrated delivery networks and health plans such as Kaiser Permanente, Blue Cross Blue Shield Louisiana, and Stanford Hospital & Clinics. For more information, visit http://www.omadahealth.com and http://preventnow.com.
Marian Hughes, 708-246-0083
Venture Capital Database