Interest in telemedicine continues to increase, and Lemonaid Health raised an oversubscribed $33 million Series B round of funding to develop its on-demand platform for accessing health care online.
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The San Francisco-based company was started in 2013 to develop a direct-to-consumer, primary care platform that uses technology to change the way people interact with health care, CEO Paul Johnson told Crunchbase News. Users pay for the care themselves, and the visits cost about the same as an insurance co-pay, he said.
Olive Tree Ventures led the round, with participation from Artis Ventures, Correlation Ventures, Hikma Ventures and Sierra Ventures. The new round brings total financing to $55 million, including an $11 million Series A round raised in 2017 according to Crunchbase data.
Poised for expansion
One of the ways Lemonaid Health differentiates itself from competitors is by operating its own pharmacy, as well as offering lab testing through a partnership with Quest Diagnostics, one of its early investors. It also partners with Scanwell Health to provide at-home urine testing kits.
With the new funding, Lemonaid Health will expand its team of medical professionals and increase the number of services being offered to patients, including treatment for asthma, hypertension, Type 2 diabetes and more mental health services.
After securing its Series A, the company was offering services in 10 states. Today, its reach is nationwide, Johnson said. Telemedicine regulations differ from state-to-state, so some allow video calls and/or telephone calls, while others only allow telephone calls and/or secure messaging, he said.
“We are now focused on expanding services,” Johnson said. “We have helped 1 million patients so far, and we want to help 10 million in the next few years.”
What investors are saying
Alejandro Weinstein, general partner at Olive Tree Ventures, said in a written statement that Lemonaid Health is taking some of the burden off of health systems, especially those primarily managing COVID-19, by offering an alternative to in-person care.
“By connecting directly with patients in need and seamlessly providing consultative services and treatments, Paul and his team are taking a cutting-edge approach to addressing the backlog of need in today’s health care environment,” Weinstein said. “We are excited to partner with Lemonaid Health to realize the full potential of technology in re-envisioning the future of health care.”
Next steps for Lemonaid Health
Meanwhile, the company has 75 employees on the team, which includes doctors, nurses, pharmacists, pharmacy techs, patient support and operations. Johnson plans to grow to more than 250 people by 2022.
“We are focused on providing the best level of service to patients and will be expanding our care offerings to chronic conditions,” he said. “We will also build out our team and platform with additional services to meet demand.”
Illustration: Li-Anne Dias