Healthcare Pulse: Digital Health rakes in $839 million

In this week's funding news, various innovative companies have secured significant investments, totaling impressive amounts. London-based Flo Health Inc. , a fertility-focused period-tracking app, raised a landmark $200 million Series C from General Atlantic, valuing the startup at over $1 billion and marking it as the first “purely digital” #femtech app to achieve unicorn status. Seattle's Outpace Bio raised $144 million in Series B financing to enhance its AI-powered cell therapy solutions, bringing its total funding to around $200 million. Meanwhile, New York City-based Spring Health , a global #mentalhealth solutions provider, raised $100 million in a Series E round, boosting its valuation to $3.3 billion. Cambridge, MA-based?AIRNA ?also?secured $60 million to advance its RNA editing therapeutics, and UK-based Healx raised $47 million to further its AI-driven #drugdiscovery for rare diseases. These top deals highlight the burgeoning interest and investment in #healthtech and #biotech sectors, underscoring their critical roles in advancing #healthcare #innovation and treatment solutions.

Funding

London-based Flo Health Inc. , a fertility-focused period-tracking app, raised a $200 million Series C from General Atlantic. The funding values the startup at more than $1 billion post-money, which, per the company, makes it the first “purely digital” femtech app to become a unicorn. That distinction is challenging to qualify for since there seem to be no clear “purely digital” unicorns in the femtech category for comparison. (Maven, which describes itself as a health clinic and benefits platform, was last valued at $1.33 billion in 2022.)

Outpace Bio , a Seattle-based cell therapy company, has raised $144 million in Series B financing, bringing its total funding to approximately $200 million. The company uses AI-powered protein design to enhance immune cells for fighting solid tumors. RA Capital Management led this round, with participation from a diverse group of new investors, including Qatar Investment Authority, Surveyor Capital, and others. Existing investors such as ARTIS Ventures, Playground Global, and Bristol Myers Squibb also contributed. This substantial funding positions Outpace Bio as a significant player in the AI-driven cell therapy field, potentially accelerating the development of novel treatments for solid tumors.

Spring Health , a New York City-based company providing global mental health solutions for employers and health plans, has raised $100 million in a Series E funding round. This investment values the company at $3.3 billion. Generation Investment Management led the round, with participation from existing investors, including Kinnevik, William K Warren Foundation, RRE, and Northzone. Spring Health plans to use this significant capital injection to expand its operations and extend its business reach. This funding and valuation underscore the growing importance of mental health solutions in the workplace and healthcare sectors, positioning Spring Health as a major player.

AIRNA , a Cambridge, MA-based biotech company focused on RNA editing therapeutics for rare and common diseases, has secured $60 million in financing, bringing its total Series A funding to $90 million. The round was led by Forbion, with participation from new investors Ono Venture Investment and Alexandria Venture Investments as well as existing investors ARCH Venture Partners and ND Capital. Airna plans to use the funds to advance its lead product candidate into clinical trials and further develop its pipeline of RNA editing therapeutics, aiming to restore health in patients with various diseases.

Healx , a Cambridge, UK-based AI-driven biotech company focusing on rare diseases, has secured $47 million in Series C funding, raising its total to approximately $110 million. The round was co-led by R42 Group and Atomico, with participation from both new and existing investors. Ronjon Nag, founder of R42 Group and a Stanford Medicine Adjunct Professor, joined Healx's board. The company plans to use the funds to advance its pipeline of rare disease treatments, particularly its lead program HLX-1502, which is entering Phase 2 clinical trials for neurofibromatosis Type 1 (NF1). This investment underscores the growing interest in AI-enabled drug discovery and development for rare diseases.

Perceptive Technologies , a four-year-old Boston startup that has developed an AI-driven robotics system for dental procedures like cavity filling, dental cleanings, and root canals, has raised $30 million in financing. The round included investments from Innospark Ventures, KdT Ventures, Primavera Capital, Plaisance Capital, Y Combinator, and Ed Zuckerberg (Meta CEO Mark Zuckerberg's father).

Protembis GmbH , an Aachen, Germany-based medical technology company, has secured €20 million in venture-debt financing from the European Investment Bank (EIB). The company plans to use these funds to complete clinical trials and support the marketing of its "ProtEmbo" cerebral embolic protection system. Additionally, the financing will help Protembis accelerate research, development, and market access efforts in Europe, the United States, and other regions. This investment highlights the EIB's support for innovative medical technologies and Protembis' potential to advance cerebral protection during medical procedures.

LTZ Therapeutics , a biotech company based in Redwood City, CA, and Shenzhen, China, has closed a Series A financing round of over $20 million , bringing its total funding to approximately $50 million. The round was led by new investor Lapam Capital, with participation from GL Ventures, K2 Venture Partners, and Shunwei Capital. The company plans to use the funds to advance its Myeloid Engager pipeline to treat cancer and autoimmune diseases. Specifically, the proceeds will support the Investigational New Drug (IND) process and initiate a Phase 1 clinical study for its lead asset, LTZ-301, and IND-enabling work for its second asset, LTZ-232. LTZ Therapeutics aims to advance other discovery-stage programs further and expand its team.

PineTree Therapeutics Inc , a Cambridge, MA-based biotech company, has secured $17 million in Series A funding to advance its work on next-generation targeted protein degraders (TPD) for combating drug resistance in oncology and other fields. The funding round was co-led by STIC Investments and DSC Investment, with participation from new investors such as Atinum Investment, Quantum FA, and S&S Investment and existing investors. Pinetree plans to use the funds to develop its AbReptor? antibody degrader platform further. It focuses on novel multispecific TPD programs for various tumor types and oncology indications, with potential applications in other therapeutic areas.

Mindera Health , a San Diego-based company specializing in advanced skin analytics technology, has secured $14 million in convertible note financing. The round was led by Mountain Group Partners and other existing investors, with an eye toward Series B financing in 2025. This funding will be used to commercialize Mindera's primary product, Mind further.Px?, which aims to revolutionize skin analysis at the molecular level. The investment underscores confidence in Mindera's innovative approach to medical technology in dermatology.

Amlogenyx, Inc., a subsidiary of Ultragenyx Pharmaceutical, Inc., has completed a seed funding round of $14 million , led by GordonMD? Global Investments LP and associated investors, as well as Ultragenyx. The Beverly Hills-based company, which focuses on developing gene therapies for Alzheimer’s and other amyloid diseases, plans to use the funds to advance its first product candidate.

Montara Therapeutics, Inc. , a San Francisco-based company focused on developing brain-targeting drugs, has secured $8 million in seed funding led by SV Health Investors' Dementia Discovery Fund and Two Bear Capital, with participation from Dolby Family Ventures and KdT Ventures. The funding will support the advancement of their universal peripheral blocker and a neurological disease-targeting drug and initiate chemistry programs for Alzheimer's and Parkinson's disease. As part of the financing, Dirk Landgraf from SV and Seth Strattan from Two Bear Capital have joined Montara's Board of Directors, strengthening the company's leadership and strategic direction in neurotherapeutics.

Noze , a Montreal-based company specializing in breath-based diagnostics, has received a $5 million equity investment from the Bill & Melinda Gates Foundation. Following two previous grants, this latest funding brings the foundation's total contribution to $6.8 million. Noze plans to use this investment to further develop its disease detection platform, focusing on deploying it in low- and middle-income countries. This funding underscores the potential of Noze's technology in global health diagnostics, particularly in resource-limited settings. It demonstrates the Gates Foundation's commitment to supporting innovative healthcare solutions for underserved populations.

Wisedocs , a Toronto-based company that provides intelligent tools for medical record review, has secured CAD4.5 million in growth financing from CIBC Innovation Banking. The company plans to utilize this funding to expand its client base and enhance its product offerings. This investment highlights the growing interest in innovative solutions for streamlining medical record analysis and underscores Wisedocs' potential for growth in the healthcare technology sector.

Neupulse , a spinout from the University of Nottingham, has secured ￡500k in equity funding through the Midlands Engine Investment Fund II, managed by Mercia Ventures, adding to a previous ￡2.5M investment from Eos Advisory and US-based investors, bringing total funding to nearly ￡4.5M. The company, founded in 2021 by Professors Stephen and Georgina Jackson and Dr. Barbara Morera and led by CEO Paul Cable, is developing a wristband device to manage Tourette’s syndrome symptoms by stimulating the median nerve in the wrist. The funds will be used to finalize the device's development, conduct further trials, and seek regulatory approvals in the UK, Europe, and the USA. Clinical trials have shown that the device can initially reduce tic frequency by an average of 25%, with further reduction after four weeks of use.

Medicom Technologies Inc. , a Raleigh, NC-based health tech startup specializing in enterprise imaging interoperability, has closed a strategic financing round with participation from UPMC Enterprises, Tampa General Hospital Ventures, existing investors, and local Triangle venture groups, as well as securing capital from Customers Bank. This funding aims to drive platform innovation and accelerated growth through strategic partnerships with academic institutions and Research Triangle Park participants, leveraging the deployment of new capital to enhance go-to-market functions and expand Medicom's presence in the health information technology sector.

Clearly , a Kyiv-based psychological startup has secured non-dilutive funding from Google for Startups Ukraine Support Fund to expand its presence in international markets such as Poland, Spain, and Latin America and enhance its services through artificial intelligence. Founded by Dmytro Marakhovskiy and Dmytro Kovalenko just two weeks before the Russian invasion, Clearly is a high-tech platform that connects therapists with online and offline clients, and this funding will support its growth and development.

Shenzhen Synthetica Pioneering Co., Ltd., a China-based biotech startup focused on synthetic biology for novel bacterial therapeutics, has closed a Series A funding round led by Boehringer Ingelheim Venture Fund and Temasek, with additional participation from Lenovo Capital, Fosun Health Capital, and ATLATL Summer Fund. The company will utilize the funds to accelerate its oncolytic bacterial pipelines into clinical trials, driving innovation in cancer treatment.

iotaSciences , an Oxford-based company specializing in single-cell biology handling solutions, has secured an undisclosed amount of equity funding. The investment came from Oxford Science Enterprises and the Oxford Innovation EIS Growth Fund, managed by Oxford Innovation Finance. The company plans to use the funds to support its ongoing commercial activities in Europe, the United States, and Asia and further develop its next-generation single-cell cloning platform.

Funds

Amulet Capital Partners, LP , a middle-market private equity investment firm based in Greenwich, CT, and Walnut Creek, CA, focused exclusively on the healthcare sector, closed Amulet Capital Fund III with approximately $1.2 billion in capital commitments.

venBio announced the closing of venBio Global Strategic Fund V (“venBio Fund V”), its fifth life sciences venture capital fund. In an oversubscribed fundraise, it exceeded its target and closed on approximately $528 million in capital commitments.