This AI-powered health and telemedicine startup had already raised one of the largest funding rounds in NYC for Q1 of 2020, and K Health is wrapping up the final quarter of 2020 with another impressive funding round. This latest influx of capital will enable K Health to continue to reduce barriers to primary care while providing people with the most accurate and relevant medical information. K Health’s medical intelligence platform is entirely free and consulting with a doctor online costs only $19, less than most copays. Since the onset of the pandemic, K Health has brought on more than 1 million new users. At its core, the company has built a robust AI-powered database of clinical data points that are used to determine what treatments and diagnoses were used with those with similar symptoms.
AlleyWatch caught up with VP of Marketing Danielle Eddleston to learn more about the compamy’s impressive growth, key partnerships, and latest funding round, which brings the total funding raised to just shy of $140M.
Who were your investors and how much did you raise?
K Health raised $42M in Series D funding, led by Valor Equity Partners. Additional investors include Marcy Venture Partners, Atreides Management, PICO Venture Partners as well as existing investors 14W and Max Ventures.
Valor Equity Partners’ Founder and CEO Antonio Gracias, who sits on the boards of SpaceX and Tesla, will join K Health’s board as an observer.
Tell us about the product or service that K Health offers.
K Health is building the health system of the future. We do this in two ways:
First, we leverage AI to enable free medical intelligence so people can better understand their symptoms. We combine this with best-in-class yet affordable doctor care, deployed remotely. The result is a health care solution that helps people feel better faster, without hesitation.
K’s technology is powered by artificial intelligence which looks at billions of clinical data points from millions of people and thousands of doctors to show users – for free – how doctors diagnose and treat similar people with similar symptoms (aka “People Like Me”). Users can also chat with a doctor for just $19, less than a typical copay, and retain a history of their own medical records.
K Health covers almost all primary care conditions as well as anxiety and depression with customizable treatment plans.
We also announced recently a collaboration with Mayo Clinic through the Mayo Clinic platform. The joint work focuses on improving and accelerating deeper health intelligence to enable a better way for people to benefit from quality virtual care.
What inspired the start of K Health?
K Health was built with a belief that everyone should have free access to health intelligence and affordable care from top doctors. Our founding team was frustrated with the current state of health care.
How is K Health different?
K Health is the only data-driven platform that consolidates decades of health knowledge (diagnosis, treatments, outcomes) from thousands of doctors, insurers, and hospitals and translates that into insights for people to get the best answers to their medical questions. A fleet of doctors is on call to better treat people within minutes and deliver remote care at affordable prices and no insurance required.
What market does K Health target and how big is it?
The US Healthcare system is $3.5T a year, and $7T globally.
What’s your business model?
K Health’s information layer will always be free to use. If users would like to chat with a doctor or consume other primary care services, they pay a small fee. These services are priced far below the vast majority of copays and can be used without insurance.
We also partner with health care incumbents to increase access to care while reducing costs. We have a partnership with Anthem, the major insurer in the US, and now Mayo Clinic.
How has COVID-19 impacted the business?
This year has been a tremendous catalyst for people to seek medical information and care from the comfort and safety of home. Although we’ve added more than 1 million users since the start of the pandemic, we were already seeing big growth ahead of 2020. We believe the quality and ease of medical care experienced remotely will make K Health a resource people don’t give up and share with their friends and families.
K Health launched a Spanish language version of its app in the US in June, and made K Health available in Mexico, a country severely impacted by COVID. In April of 2020, K Health and Louisiana State University partnered to provide free access to doctors via telemedicine for all Louisiana residents throughout the entire month. In September of 2020, K Health announced a partnership with Giving Kitchen to offer free healthcare to food service workers across the country.
What was the funding process like?
Our existing and new investors are excited to partner with us because they recognize that we can transform how millions seek resolution to their health care needs.
What are the biggest challenges that you faced while raising capital?
Thankfully we haven’t had many challenges raising the capital we’ve needed to date. We’re focused on executing our ambitious vision to bring the very best primary care experience and free health information to everyone.
What factors about your business led your investors to write the check?
Our investors bet on companies and teams that challenge the status quo, are driven by new ideas, and see an opportunity to make a positive difference. The current trajectory of the US healthcare system is unsustainable, especially given the new challenges COVID-19 has brought on. K Health is at the forefront of making a real impact to help solve this puzzle, and that’s so exciting.
What are the milestones you plan to achieve in the next six months?
K Health has plans to become the most beloved health brand for consumers globally.
Over the next six months, we will build on existing partnerships with Anthem and Maccabi (top HMO in Israel) and now Mayo Clinic to continue expanding resources to users via clinical health systems and providers. K Health also is planning to expand its offerings very soon.
Over the next six months, we will build on existing partnerships with Anthem and Maccabi (top HMO in Israel) and now Mayo Clinic to continue expanding resources to users via clinical health systems and providers.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Live your mission and build a product that adds value to society. When you have a product that moves people and is culturally relevant, investors will follow.
Where do you see the company going now over the near term?
K Health has been growing rapidly and evolving its offerings. We look forward to beginning the rollout of new treatment and practice areas in the near future.
What’s your favorite outdoor dining restaurant in NYC?
Jin Ramen on the Upper West Side.
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