According to analytics firm CB Insights, four healthcare technology companies are close to reaching a valuation of $1 billion very soon. Capsule, a prescription delivery service, Doctor on Demand, a virtual visit provider, Omada Health, a digital care provider specializing in chronic conditions, and Lyra, a mental health benefits startup, have all seen business improve during the COVID-19 pandemic.
The emerging digital pharmacy industry has one clear leader - Capsule. The company raised $200 million last fall, and recently expanded its services outside of the greater New York area to include Minneapolis and soon, Chicago. Capsule is the most prominent of the digital pharmacies, and the quick turnaround for filling prescriptions isn’t the only thing that gives it an edge over competition. Doctors and pharmacists report that Capsule users fill scripts up to 50% more than other patients.
Doctor on Demand helps fill the gap in telemedicine created by COVID-19 lockdowns. Patients are less likely to want to venture out to their primary care providers, especially for routine checkups. While worries about meaningful virtual doctor/patient interactions cropped up in the beginning of the pandemic, these concerts were shelved after new studies reported that the majority of patients felt that their telehealth experiences were successful and rewarding.
Omada Health, a company that sells tools for helping patients manage chronic illnesses, recently snagged $57 million in investments. As the world shifts towards digital healthcare solutions, companies like Omada Health create novel approaches to care that could previously only be administered in the clinic. With smartphone-based coaching, digital tools like scales and other medical tracking devices, and other features that provide virtual help, Omada can help people with illnesses like diabetes make a series of healthy decisions throughout their day that can lead to better health.
Lyra, a leading provider of virtual mental health, recently secured $75 million in Series C funding that brought it ever closer to the $1 billion goal. Lyra connects patients to high-quality therapy, coaching, and prescriptions to help them navigate their mental health challenges in a shelter-at-home world. All four telehealth companies are expected to reach the $1 billion mark very soon, ushering in a world of virtual medicine that is likely here to stay long after the COVID-19 pandemic subsides.