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Elfie, a digital therapeutic and patient data company, raised a $12 million Series A led by White Star Capital, CEO Ofir Ejnes tells Axios Pro exclusively.

Why it matters: The startup plans to seek acquisitions as peers pare down operations amid market pressure.

Context: Digital therapeutics companies have struggled due to lack of reimbursement for these tools.

Yes, but: Elfie "is not trying to be a reimbursed digital therapeutic," co-founder Jean-Francois Legourd says.

How it works: "We're just selling anonymized data to pharma, essentially," Ejnes says. 

Elfie's app, which is free to use, lets patients self-manage chronic illness. It combines clinically validated interventions and gamification to help users track their health and adhere to medication.

Pharma uses the data for clinical research and trial optimization (medication adherence in particular being a major barrier to successful trials).

Zoom in: Elfie is generating about $10 million in annual recurring revenue, Ejnes says.  

Not yet profitable, the company has four pharma clients, with whom it's inked three-year renewable contracts. Elfie is also preparing to announce a partnership with a global insurance company, Ejnes says.

Its data has shown positive impacts on patient retention and medical compliance in trials, and on vital signs monitoring, the company says.

LifeX Ventures, Partners, FEBE Ventures, and Hustle Fund also joined the Series A raise.

What's next: "We should be in the market (for a Series B raise) within 18 to 24 months," Legourd tells Axios.

"We'll be looking into potential acquisitions in the future," Ejnes adds.

As the company broadens to insurance, its biggest challenge is the amount of customization that is required across every single market. "As we progress on those deals, the decision will be to how fast that we take them on. It's really going to be a velocity conversation," he says.

State of play: Digital therapeutics players that had earned frothy valuations in 2021 have since faltered.

Last year, Click Therapeutics acquired the assets of Better Therapeutics for an undisclosed price.

ADHD-treatment video game maker Akili Interactive merged with Virtual Therapeutics, also in 2024. 

Pear Therapeutics, once considered the most mature of such businesses, was sold for parts at auction in 2023.

The bottom line: "We really want to be this common denominator where people come and store the main aspects of their health," Ejnes says. 

Exclusive: Elfie raises $12M Series A with eye on acquisitions

The startup will seek deals as other digital therapeutics pare down operations amid market pressure.

Animated illustration of a health cross with 0s and 1s running across, some sequences are highlighted as malware.

Illustration of a health plus made of binary code slowly fading. 

Elfie, a digital therapeutic and patient data company, raised a $12 million Series A led by White Star Capital, CEO Ofir Ejnes tells Axios Pro exclusively.Why it matters: The startup plans to seek acquisitions as peers pare down operations amid market pressure.

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Exclusive: Elfie raises $12M Series A with eye on acquisitions

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