Digital diabetes management company Virta Health scored $133 million in a Series E funding round led by Tiger Global.
This financing comes on the heels of Virta’s $65 million Series D in December, which propelled it into becoming a unicorn company. With the latest cash infusion, Virta says it has doubled its valuation to $2 billion.
WHAT IT DOES
Virta claims it can reverse Type 2 diabetes with its treatment program that combines tracking, coaching and remote monitoring capabilities with a nutrition-based ketogenic diet.
Although ketogenic diets can be controversial for their carbohydrate restrictions, Vitra was able to help 84% of patients enrolled in its study achieve an estimated HbA1c of under 6.5%, or reduce theirs by 1% or more after 90 days.
The treatment is available to employers and health plans at 100 percent risk, meaning customers will only pay if Vitra succeeds in reversing Type 2 diabetes and getting patients off diabetes medications.
The company also offers treatment options for prediabetes and obesity.
WHAT IT’S FOR
Virta plans to use the funds to grow its platform to reach more patients.
“The norm in diabetes care has been more medications, more weight gain, and more suffering. Diabetes reversal changes this,” Sami Inkinen, cofounder and CEO of Virta Health, said in a statement. “We have shown a path for people to live medication- and diabetes-free, and this investment is about reaching even more people and taking diabetes reversal mainstream.”
There’s no shortage of digital health startups in the diabetes space. One of the most recognizable names in the field is Livongo, which was bought up last year by Teladoc in an $18.5 billion merger.
Another company that got its start in the diabetes space is Omada. The company recently released a new service that can tweak patients’ medications without requiring a visit to primary care physician.
The nutritional cognitive behavioral therapy digital therapeutics company Better Therapeutics recently shared plans to go public through a SPAC merger with Mountain Crest Acquisition Corp II. Better Therapeutics’ treatment helps people lower their HbA1C levels through nutritional CBT to get at the root cause of cardiometabolic conditions like diabetes and heart disease.
Digital diabetes management company Glooko also recently completed a funding round, worth $30 million. Users connect their monitoring devices to the Glooko platform, where they can then view those readings alongside their meal logs or activity data collected through third-party fitness platforms like Fitbit or Strava.
They can also review educational resources, follow care programs tracked by the app and export all of their data for review by their doctor.