For the first time, Azevedo Tech Crunch has created a dedicated health series. This week, we will take a look at how startups are using artificial intelligence and machine learning to help make insurance shopping easier. We will also explore the importance of digital health investments and how they are fueling startup growth and acquisitions.
Tiger’s investments fuel startup growth and acquisitions
Tiger Global Management, a New York-based venture firm, has been quietly making a ton of billion-dollar deals in the last decade. But it is also one of the most active startup investors in the industry, with 118 investments so far this year.
Founded by Chase Coleman III in 2001, Tiger has grown from a single venture fund to a multi-business firm with two separate businesses: a private equity business and a hedge fund. This year, the firm has invested in 118 startups, up from just eight last year.
Tiger Global’s private equity fund has been a big part of the firm’s success, but the company has also been a top investor in several other startup unicorns. Olo, a restaurant delivery platform, is the latest to get a big boost from the firm.
Other unicorns in the firm’s portfolio include connected fitness company Peloton, creator platform Patreon and corporate credit card issuer Brex. The firm also has a stake in Roblox. It owned 7.3 percent of the online game maker when it went public in March 2021.
Digital health investments came in at Series C or above
If you’re an early-stage investor or founder, you’ve probably heard about the digital health industry’s record-setting funding last year. The sector saw nearly $7.4 billion invested, including two major funding rounds in Q1 and Q2. While it’s not clear if the sector is on track to surpass last year’s total, the number of funding deals suggests investors are getting interested.
This year’s investments were particularly strong in the non-clinical workflow support and patient engagement sectors. In 2021, investors poured $30.2 billion into these fields, which is more than three times what they spent in 2016.
Investors are pouring into new technologies like virtual reality and AI to enhance medical workflow. It’s a trend that’s expected to continue into 2020. Despite the flurry of activity, it’s unlikely the sector will see another mega deal in the next 12 months.
The top five funded sectors include non-clinical workflow, oncology, research and development, and patient engagement. These investments are concentrated amongst a handful of startups.
On-demand care provider Dispatch Health closed a $200M Series D with Tiger
Dispatch Health is a Denver, CO-based health technology company that offers in-home care services for patients. It combines mobile technology with house calls and medical professionals to deliver care. The company has added capital to expand its business.
Founded in 2013, DispatchHealth has been able to grow quickly. Today, the company serves 19 markets across 12 states. And it is expanding to 100 markets over the next few years.
DispatchHealth works with payers to lower costs and improve patient outcomes. With the funding, the company will work to increase its Advanced Care line, which brings hospital-level care to patients’ homes. DispatchHealth will also develop its technology and search for acquisitions.
DispatchHealth offers a variety of services, including bedside nursing, acute care, and extended care. The company’s goal is to provide an integrated care delivery solution to payers, providers, and consumers. By using Dispatch’s technology, payers can manage their patients’ medical care from a single platform. This approach helps ensure that the patient’s needs are met and the provider’s budget isn’t cut.
Insurify uses artificial intelligence and machine learning to simplify insurance shopping
Insurify is a virtual insurance agent that provides an efficient and affordable car insurance shopping experience. They use artificial intelligence to provide insurance quotes that help drivers save money. The platform also monitors changes in premium prices, offers rate alerts, and recommends carriers based on customer service and pricing. It is one of the fastest growing insurance platforms in the country.
The company was founded in 2013 by Snejina Zacharia. She realized that the current car insurance shopping process was frustrating and tedious. Her solution was to create a new online comparison platform that would make insurance shopping easy and enjoyable. So she worked with insurance experts at MIT to build a system that was based on data, natural language processing, and machine learning.
Today, Insurify is one of America’s most popular toonily virtual insurance agents. Their online auto insurance quote comparison service is available through 80 insurance partners. Through its proprietary software, RateRank(tm), it matches a user’s risk profile with the best carriers based on premium costs, customer service, and more.
