General Catalyst and Kinnevik Co-Lead a $52.5 Million Investment in Livongo Health
Proceeds will Accelerate Growth, Add New Chronic Conditions, Speed International Expansion
MOUNTAIN VIEW, Calif., March 16, 2017-- Livongo Health, the leading 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.
"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 now reaches more than 3 million covered lives and the Company's U.S. growth is a strong foundation for expansion to international markets.
"Diabetes is a large, fast growing, and life-long condition that requires a comprehensive approach to lift quality of life and address patient needs." commented Chris Bischoff, Senior Investment Director at Kinnevik. "Livongo is a category-defining company and there is strong potential for Livongo to replicate their U.S. success in Europe and other international markets. We are delighted to partner with Livongo to build a global leader in chronic care management."
"Our team is focused on empowering our members to live healthier lives, not just manage their chronic conditions. That means we have to address all of their health issues in a comprehensive way." said Glen Tullman, Chief Executive Officer of Livongo. "In addition to diabetes, we're focused on extending our program to support other chronic conditions like hypertension and to continue to deliver an experience that our members love while improving clinical results and lowering costs. This new funding will accelerate our investments in R&D and expansion of our rules engine from 10,000 to more than 100,000 rules, allowing us to completely personalize the experience our members have."
About Livongo Health
Livongo is the leading consumer digital health company that empowers people with chronic conditions to live a better life. We have developed a completely new approach for diabetes management that combines the latest technology with coaching. By offering the right information, tools, and support, at the right time, we provide our members with real-time, personalized insights and support to make diabetes management easier. Our approach is leading to better clinical and financial outcomes while also creating a better experience for people with diabetes and their care team of family, friends, and medical professionals. For more information visit: www.livongo.com. View and download Livongo's latest images for media use at www.livongo.com/press.
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.
Venture Capital Database