Omada Health Secures $23M to Help Prevent Chronic Diseases Online.
San Francisco-based Omada Health has recently secured a $23 million funding round led by Andreessen Horowitz, making it the firms very first significant investment within the digital health area. The San Francisco startup’s main product is a 16 week long online program named Prevent, it been designed to help people with diabetes make changes to their diet and lifestyle to avoid developing the disease.
Users of the program will be asked to input their daily food, drinks and activities. The company will then provide the users with a wireless scale, pedometer, professional health coach and interactive health lessons. Omada also set up social game that will allow the users to compete against dozens of other users to achieve their goals.
The payment for this service will be over $130 per month for the first four months, totaling up to $520, and $12 per month for ongoing access.
One-in-three Americans have pre-diabeters, a higher than normal blood glucose levels that leaves them at a much higher risk of developing a type 2 diabetes within decades time. Studies have shown the best way to prevent this problem is by the use of exercise.
“We’re caught in an unacceptable paradox: Despite staggering technological advances in nearly every aspect of our lives, for the first time in history we find that preventable, chronic disease now kills more people than infectious disease,” said Sean Duffy, chief executive of Omada, in a statement. “Omada’s mission is to inspire people to alter the habits that place them at risk for serious but preventable conditions.”
Other investors to join in on this series B funding round Includes, Kaiser Permanente Ventures, U.S. Venture Partners and the Vertical Group. Andreessens partner Balaji Srinivasan, will also be joining the company’s board of director. In a blog post released on Wednesday morning, he wrote that Prevent has shown clinically-significant weight loss results during a set of studies that where published in the peer-reviewed journal The Diabetes Educator.
“Omada has built one of the very first digital therapeutics: a clinically validated, peer-reviewed, reproducible, and scalable way for people to treat a condition over an internet connection,” he wrote. “Specifically, Omada’s Prevent product is a clever combination of science, software, design, and hardware, which blends the online and offline to achieve clinically meaningful behavior change.”
Srinivasan continued with saying that the same apporach can also be applied towards other chronic conditions, which include such problems as insomnia, hypertension, and quitting smoking.
“If we can deliver weight loss over an internet connection, suddenly anything that involves serious behavior change is a possibility,” he said. “And once a digital therapeutic works for one condition, it can be scaled to the world at the speed of software to help bend and then reverse the dangerous cost curves which we referenced above.”