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Capable Health, maker of a plug-and-play software platform for nascent virtual care startups, raised $6 million in seed funding to expand its provider portfolio, CEO Peter MacRobert tells Erin exclusively.

Why it matters: Many digital health companies build their apps from scratch, a lengthy process that often involves complex puzzles of separate components. Capable is among a small number of startups aiming to ease the process with an out-of-the-box platform.

Details: M13 led Capable's seed funding round and was joined by AlleyCorp and Able Partners.

Driving the news: The recently passed federal rule banning information blocking gives patients unprecedented access to the health data and that lit a fire under the virtual care sector.

"These businesses are all building from zero and it's like, why? If you were building an e-commerce business you wouldn’t start from scratch," MacRobert says.

How it works: Capable's software platform lets providers build and grow HIPAA-compliant digital clinics, and offers them tools for...

Patient-provider messaging and video chat

Meanwhile, Capable has partnerships with other HIPAA-compliant companies that startups can use to add tasks like scheduling and lab and prescription ordering.

By the numbers: New York-based Capable says its customers get set up in roughly eight weeks, compared to the five to seven months other entrepreneurs in the sector tell Axios they spend building their foundations.

The company has 12 customers including New York-based Alloy, a women's telehealth startup focused on menopause, and Cleared, a digital pharmacy for allergies.

💭 Our thought bubble: Capable reminds us a bit of two other digital health infrastructure companies — Wheel and Zus Health, which launched with a bold plan to become both the common platform digital health companies use to build their tools and a unified health record.

What they're saying: Earlier phases of the digital health wave centered on consumer and provider-focused businesses, observers, founders and venture backers tell Axios. In the current phase, we're seeing a proliferation of foundation-building companies for entrepreneurs.

The industry is "now big enough to need its own enablement platforms — the pick-sand-shovels players," says Ruby Gadelrab, CEO and founder of MDisrupt, a platform that connects digital health founders to sector experts.

"The public markets may be bearish at the moment on telemedicine [but] I’m still long term bullish on the infrastructure opportunities in digital health," says Deena Shakir, a partner at Lux Capital with a range of investments in the space.

What's next: Shakir says health tech infrastructure businesses have a bright future as enablers of the sector's next wave.

"These companies have the opportunity to become the Stripe, AWS, Shopify, etc. for digital health," she adds.

1 big thing: Capable enables care with $6M seed

Illustration of a hand tapping an app icon with a medical cross

Hello Heart, a digital therapeutic startup, raked in $70 million in Series D funding led by Stripes growth equity, the Menlo Park-based company tells Sarah exclusively. 

Why it's the BFD: Heart disease is the leading cause of death in the U.S., and it also tops the charts from a cost perspective. Identifying risks early or managing symptoms in a way that is convenient — ie. the Hello Heart app — can act as a big boost on heart health. 

"Our mission is to empower people to understand and self-improve heart health," co-founder Maayan Cohen tells Sarah. "We do it by using technology and behavioral science."

By the numbers: The Stripes-led capital infusion brings Hello Heart's total funding to date to about $140 million. IVP, Resolute and BlueRun Ventures joined in the round. 

The funding follows a $45 million Series C round in May 2021, led by IVP, which pushed its post-money valuation to almost $295 million, per PitchBook. 

Hello Heart declined to disclose where its latest capital infusion pushes valuation, but Cohen says it has more than doubled since its last round. 

State of play: Government agencies have cast a light on the problem, triggering employers to act, and generating more demand for offerings like Hello Heart's. 

The Surgeon General recently instituted a "Call to Action" to improve hypertension control, while the CDC is pushing employers to provide coverage for automated home blood pressure monitors. 

Yes, and: Hypertension rates and mortality rates associated with heart disease are dramatically higher in underserved populations, creating an opportunity to address health inequity. 

Employers are looking at DEI solutions to fill these gaps in care, Cohen says. "It's time to start looking at which populations are underserved and addressing their needs as well." 

How it works: Hello Heart offers a blood pressure monitor and an app that tracks blood pressure, pulse, medications, weight and activity. 

The app provides real-time alerts and encourages engagement with health care professionals to prevent symptoms from developing into more serious issues. (Hello Heart boasts the highest engagement rate in the category.)

A small report by The Validation Institute suggests it is linked with significant cost savings for employers. 

What's next: The funding is about growing to keep up with accelerating demand from employers, Cohen says.

"With the pandemic wearing off and mental health solutions already in place," Cohen says, "this is the next big thing" that employers are being pushed to prioritize. 

Hello Heart has doubled its customer base since the start of the year, and aims to double that footprint again by the end of the year, Cohen says. 

Plus, Hello Heart plans to expand beyond blood pressure tracking and management, evolving into a platform addressing overall heart health. 

That means getting into tracking for hyperlipidemia and cholesterol, AI-driven digital coaching for hyperlipidemia and medication reminders, for example. 

M&A may be a lever to help it get there, Cohen notes.   

Context: For Cohen, the genesis of Hello Heart, founded in 2013, is personal.

Cohen says she spent hours online each day trying to educate herself after her then-boyfriend was diagnosed with a brain tumor 12 years ago. 

"During this experience, I learned that people just don't have any tools to understand and improve their own health."

2. The BFD: Hello Heart pulls in $70M

Illustration of an EKG line coming out of a heart shape.

Patient Square Capital committed to invest up to $300m to form Enevate Sciences, which will be led by James Boylan (ex-president and head of investment banking at SVB Leerink). www.enevatesciences.com

Jumpstart Capital, a Nashville-based health tech VC firm, is raising $120m for its second fund, per an SEC filing. http://axios.link/MoPh

Adona Medical, a California-based developer of treatments for heart failure management, raised $37.5m in a round co-led by Cormorant Asset Management and The Capital Partnership. https://www.adonamed.com 

3. Deals o' the day

Calibrate named Jennifer Lovejoy senior VP and head of research from Seven.me, where she was head of science.

Wheel named Brandon Castel VP and head of sales.

Google named Perry Payne clinical health equity specialist from IBM Watson Health, where he helped lead its health care transformation efforts.

CardieX named Lesa Musatto to its board of directors. She also serves as chief marketing officer for the Auction Technology Group. 

Modern Health named Naomi Osaka celebrity spokesperson.

4. It's Personnel

🌸 Happy Monday, Health Tech readers, and hello May. 

🔥 Situational awareness: After Teladoc and Accolade last week saw their stocks get hammered amid disappointing quarterly reports, Sarah sat down for a fireside chat with Transcarent’s Glen Tullman at ATA in Boston this morning. 

Sarah asks: Will Transcarent go after Accolade? What mistakes were made after Teladoc bought Livongo? Stay tuned for Glen's responses. 

🎶 Erin DJ'd her first wedding in L.A. this past weekend, and got the party started with one of her favorite nuptial tunes: "I Wanna Dance With Somebody" by Whitney Houston.

🙏 Thanks for reading Axios Pro Health Tech! Please ask your friends, colleagues and fellow music-lovers to sign up.

May 02, 2022

1 big thing: Capable enables care with $6M seed