Sidekick Health welcomes new investors, who pumped $55 million into "digital therapeutics", another over-hyped supposedly disruptive health care trend. This involves the typical phone apps, etc. that will instantly make you lose weight, get exercise, manage your blood pressure and blood sugar, etc. The investors who get stuck holding the bag will have a digit for you.
A company called Hello Heart raises a fresh $70 million in capital for yet another app that supposedly helps improve management of cardiac health. I despair about the sanity of venture capital and private equity investors, they just seem to keep making the same mistake of funding companies that don't really do anything clinically worthwhile, but then I remember THEY ARE PLAYING WITH OTHER PEOPLE'S MONEY and they are really good at the greater fool theory--they dump bad investments on some other chump before the problem becomes apparent--see Teladoc, e.g.
TimeDoc Health obtains $48.5 million in new financing for its software product that supposedly simplifies administrative work for physicians and provides care coordination support. Only the 100th product in the market like this, but I am sure it has some truly distinguishing features.
More lunacy, kind of ironic for a mental health company, as Lyra Health raises a fresh $235 million in capital at over a $5 billion valuation. Just gonna say the company will never earn enough money to justify that valuation. But institutional investors work on the greater fool principle--they think they can always find someone stupider to take a dumb investment off their hands.
Medically Home, which attempts to outfit the homes of patients with serious illnesses so that they can be treated outside of a hospital, has raised an additional $110 million in capital to support growth of the business.
Bright Health, like Oscar Health and a couple of others, was going to be a new kind of health plan. The company has raised zillions of dollars and even after a disastrous IPO, has raised more money now from investors including Cigna Health, which is bottom fishing. They clearly are hoping Cigna will eventually take them out of their misery. The reason they have to raise all this money is they keep spending it fruitlessly and not making anything like a profit. The notion that these guys can seriously compete with the UnitedHealth's of the world is absurd. People who have a lot of money to invest are not always smart.
Investors may get the sharp end of the stick and swallow some losses, as Sword Health, which manages musculoskeletal conditions, raised an insane $163 million at an even more insane $2 billion valuation. There is nothing proprietary about what this company does, and no barriers to entry.
Money streams in to Flo, which sells an app for women to track menstrual cycles, etc. Investors hope they won't be left up a creek. $100 million in financing that is highly unlikely to ever generate a return.
We will see how devoted to investors Medicare Advantage plan company Devoted Health will be. The valuation insanity continues as this company going into an incredibly competitive market, against people like UnitedHealth and Humana, raises $1.2 billion in new capital at an $11 billion valuation. Literally crazy.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].