Devoted Health Secures $175 Mn in Series E Funding to Propel Medicare Advantage Services

The series E round, an all-equity deal, stands as a testament to Devoted Health's growth trajectory and garnered support from key investors, including Andreessen Horowitz and General Catalyst.

Waltham-based Devoted Health, a tech-enabled Medicare Advantage startup, raised a $175 million Series E funding round recently. 

This funding is led by a consortium including The Space Between, Highbury Holdings, GIC, Stardust Equity, Maverick Ventures, and Fearless Ventures.

The Series E round, an all-equity deal, stands as a testament to Devoted Health's growth trajectory and garnered support from key investors, including Andreessen Horowitz and General Catalyst. Notably, with this fundraise, the startup’s valuation reached $12.87 billion.

Founded in 2017 by Todd and Ed Park, Devoted Health distinguishes itself by providing comprehensive care for older Americans by combining two of its services. Its Medicare Advantage coverage, a virtual, and in-home care provider, and Devoted Medical, functioning as a virtual-first and in-home medical group, plays a crucial role in delivering accessible healthcare services. 

Commenting on the same, Ed Park, CEO, Devoted Health, said, "In a healthcare system that isn't always accessible or easy to navigate, we at Devoted Health are profoundly honoured to provide each member with the same quality of care and service we'd want for our own families."

The funding round follows a remarkable year of growth for Devoted Health, serving over 140,000 members as of December 2023, reflecting a robust year-over-year growth rate of more than 70%. The startup expanded its services to cover 299 counties across 13 states during the Medicare Annual enrollment period.

The startup's tech-enabled preventative care services contributed to improved patient outcomes, with a reported 83% of members with diabetes having their HbA1c under control and at least 80% of members with hypertension achieving controlled blood pressure.

Last year, healthcare staffing technology firm ShiftKey secured an impressive $300 million, propelling its valuation beyond $2 billion. Following suit, ShiftMed, a mobile app facilitating connections between healthcare workers and providers, secured $200 million in fresh funding to drive its expansion.