LOS ANGELES--(BUSINESS WIRE)--Wellth, a digital health company utilizing behavioral economics to empower people to prioritize their health, today announced an oversubscribed Series B fundraising round of $20 million. The round was led by SignalFire, with participation from Frank Williams, Co-Founder and Former CEO of Evolent Health (also joining Wellth as Chairman of the Board), and existing investors The Social Entrepreneurs’ Fund, CD Venture, Yabeo and Partnership Fund for NYC. Wellth has achieved impressive annual growth since its founding in 2014 due to its proven ability to connect with members and engage them more effectively to influence behavior change—such as taking medications as prescribed. The new capital will enable the organization to further invest in the behavioral science engine behind the app and in team expansions to support Wellth’s growing member base.
Many individuals struggle with building lasting healthy habits, and this takes a costly toll on individuals’ health and the healthcare system, in general. 6 in 10 adults in the U.S. have a chronic disease, which is a leading cause of death and disability and a primary driver of America’s 4.1 trillion annual health costs. Meanwhile, many patients struggle with medication adherence, which can negatively impact individual health outcomes, and contributes to more than $500 billion in avoidable healthcare costs.
To date, many patient engagement platforms have not been effective in driving patients to make real habitual changes to their health regimen. However, Wellth uses the power of behavioral economics with sophisticated machine learning AI to build a custom member experience to motivate the follow-through of healthy behaviors. 91% of its members interact with the Wellth app every day; this impressive engagement has led to long-term intrinsically-motivated behavior change. As a result, Wellth’s health plan and provider clients have measured drastic cost savings, and Medicare Advantage plans have achieved higher Star ratings. Wellth’s outcomes include:
- 42% average reduction in inpatient utilization
- 29% average reduction in ED utilization
- 16% improvement to medication adherence
“Wellth has solved one of the hardest and most fundamental challenges in healthcare—motivating patients to take action and do what’s best for their health. Wellth’s 91% daily adherence rate amongst its member base is unheard of in the industry,” said Yuanling Yuan of SignalFire, who leads the firm’s healthcare investment strategy.
Instead of inundating patients with standard texts, messages or unused app downloads, Wellth uses core principles of behavioral economics, such as loss aversion, to tap into natural psychological drivers and motivators to drive members to take more positive steps in their health journey. Patients are tasked to take a simple healthy step: snapping a daily photo of their medications, glucose levels or other healthy behaviors. Through this daily interaction, behaviors are trained into habits, which ultimately lead to lasting change and positive health outcomes.
"At the core, we’re removing barriers and giving patients the motivation to do what’s best for their health,” says Matt Loper, Co-Founder and CEO at Wellth. “This mission is very personal to me, since I saw my own uncle struggle with behavioral change after a type 2 diabetes diagnosis. After he passed, I set out on a personal quest to understand why humans don’t do what we’re “supposed to do” when it comes to our health. Our Series B funding allows us to continue to understand that crucial question, solving some of the biggest challenges within healthcare and impacting even more patient lives.”
“Wellth is uniquely positioned as the leading behavior change company in healthcare. The team has taken an innovative approach through a data-driven, behavioral economics lens to effectively activate, engage and drive lasting impact for patients struggling to manage their health,” said Frank Williams, Wellth’s Board Chairman. “This core competency can be applied to drive vastly improved health outcomes and significantly lower medical costs. As a result, the company has driven impressive growth through relationships with the nation’s leading health plan and provider-based organizations. Wellth has a bold vision to truly impact healthcare, and I’m excited to be part of that journey.”
Wellth empowers people to prioritize their health, every day. Built on the science of behavioral economics, the Wellth platform generates lasting behavior change and positive health outcomes by motivating members to follow through on healthy behaviors. Each Wellth program provides an approachable and personalized experience, while rewarding daily progress and helping members build lifelong healthy habits. Wellth’s powerful results are proven to close care gaps, improve quality measures and reduce costs—leading to better outcomes for our customers—AND our members. Learn more by visiting wellthapp.com.
SignalFire is the first venture capital firm built like a technology company to better solve for the needs of founders. The core of its value-add is Beacon, the AI engine SignalFire has been refining since the firm's launch in 2013. Beacon tracks over 495 million employees and 80 million companies to guide the fund’s investing and assist portfolio companies with scaling their teams and revenue. SignalFire also helps early-stage founders navigate the toughest parts of building a company at every stage, with expert advisors, 200 skill-building workshops a year, and an in-house team of recruiters, data scientists, PR experts and go-to-market leaders. With over $1.8 billion in assets under management, SignalFire focuses on leading seed rounds while opportunistically investing in Series A and B rounds. Our key sectors include AI/ML, developer tools, healthcare, and cybersecurity, with notable investments such as Frame.io, Grammarly, Flock Freight, Ro and Stampli.