San Francisco, April 30, 2020 — Virtual healthcare platform, Vida Health, announced today that it raised $25 million in new funding to meet the increased demand for mental and physical virtual care. The funding was led by Ally Bridge Group (ABG), a leading global life science investment firm. Returning investors include Yahoo! founder Jerry Yang’s AME Cloud Ventures, Aspect Ventures, Canvas Ventures, NGP Capital, Webb Investment Network, and Workday Ventures.
The COVID-19 pandemic is shining a light on the growing need for virtual, personalized mental and physical care. Since COVID was declared a pandemic in early March, Vida Health has launched to 500k+ new lives, bringing the total number of covered lives to more than 1.4 million. Vida Health co-founder and CEO Stephanie Tilenius said the funding will be used to help meet the increased demand for virtual care, particularly in mental health.
“Every founder hopes to see the company they’ve worked so hard to build become part of a solution to something big,” said Tilenius. “While I never would have hoped for a tragic pandemic like COVID-19, I’m thankful that our platform is ready and able to meet this increased demand and improve the lives of those chronic patients who are most at risk of serious complications from this virus.”
Investors also see why virtual healthcare is especially important at this time.
“The COVID-19 pandemic has made it obvious that continuous, comprehensive, virtual care, is playing a key, ever-increasing role in healthcare,” ABG Founder, CEO and CIO Frank Yu said. “With a robust holistic product platform, a provider network that encompasses the United States, and best-in-class outcomes in programs ranging from weight loss to diabetes to heart diseases management, we believe that Vida Health is well positioned to play a leading role in transforming healthcare. We look forward to supporting the company as it moves towards scaling its polychronic platform into more employers, health plans and lives, particularly in the wake of COVID-19’s illuminating role in accelerating the prioritization of mental healthcare.”
“Vida Health’s virtual approach of continuous care for multiple chronic conditions — focusing on the intersection of mental and physical health — is exactly where healthcare needs to go,” said Jerry Yang of AME Cloud Ventures, and co-founder of Yahoo!. “As a Vida Health investor, I’m really excited about the company’s progress with important customers and strong growth.
Especially in these COVID-19 times, the immediate need for digital care to help people with chronic and mental health conditions including anxiety and depression is more important than ever.”
Since launching in 2014, Vida has fine-tuned its approach to mental health. Participants working with Vida’s nationwide therapy coverage in all 50 states, have shown an average reduction of anxiety and depression by more than 50%. One Fortune 500 customer saw an average reduction of 84% in depression scores and 72% in anxiety scores, as assessed by the clinically validated Patient Health Questionnaire (PHQ-8) and the Generalized Anxiety Disorder Scale (GAD-7), respectively.
Mental and behavioral disorders affect 50+ million people in the U.S. and, according to the National Institutes of Health, cost the U.S. economy $193.2+ billion in lost productivity and earnings. Yet, historically, 60% of those affected don’t seek treatment. With COVID-19 exacerbating uncertainty, anxiety, and depression, virtual mental health has seen a dramatic increase in demand in the last several months.
About Vida Health
Vida Health is a leading virtual care platform that was designed from the ground up to treat multiple chronic health conditions simultaneously, through a balance of machine learning that personalizes each person’s treatment and a human connection with real life health coaches and therapists who bring the empathy and accountability people need to reach their goals. Vida Health’s services are delivered through a mobile platform that supports individuals in preventing, managing and reversing chronic conditions such as pre-diabetes, diabetes, hypertension, obesity, depression, anxiety, etc. The platform integrates deep individual expert care with data-driven technology and remote monitoring to deliver best-in-class health outcomes and cost savings to employers and health plans. To-date, some of the largest nationwide health plans and employers have benefited from Vida’s unique offering.