8/28/17

The Rock Weekly

The rumors about digital health business models are true

The rumors are true: B2B business models dominate in digital health. So it’s worth asking: What’s working in enterprise sales? And why? What can startups and enterprise leaders learn from each other to tackle the notorious sales challenges in healthcare? To provide clarity and understanding, we surveyed 85 digital health founders to uncover the tactics successful startup teams employ to close deals. Read the whole report. Here’s a sneak peek of our findings:

  • 34% of startups began as B2C—61% of those companies ultimately pivoted to B2B or B2B2C. Only 14% currently sell directly to consumers.
  • Though “death by pilot” is a commonly cited pitfall in digital health, among our respondents, 70% of pilots converted to paying customers.
  • Proceed at your own risk: 39% of CEOs approached customers for a pilot before their MVP was ready.

Recent Funding

Huge congrats to two portfolio companies, Stride Health and Lumity, on their Series Bs!

  • Stride Health, the go-to platform for finding health benefits raised $23.5M
  • Lumity, which helps employers evaluate health benefit programs, raised $19M
  • AbleTo got $36.6M for its tech-enabled behavioral health program 
  • Amgen led a $6M investment for GNS Healthcare's machine learning technology
Read our recent funding report. Then get all the deals, including investor stats, founder demographics, & more with our Digital Health Funding Database.
×