Virta Health has successfully raised $373 million over five funding rounds, achieving a valuation of $2 billion. The company is dedicated to reversing type 2 diabetes and other chronic conditions through clinically-proven treatments.
Keep reading to explore the intricacies of Virta Health's fundraising journey and the investors backing this transformative platform.
What Is Virta Health?
Virta Health, founded by Sami Inkinen, is dedicated to reversing type 2 diabetes and other chronic conditions through a clinically-proven, nutrition-first approach. The company operates from Denver and San Francisco, with remote work options available.
With a workforce of 501-1000 employees, Virta Health focuses on sustainable weight loss and diabetes reversal, aiming to reduce or eliminate the need for medications. Their personalized plans and expert support are designed to revolutionize healthcare delivery.
For more information, visit their Wellfound career page or their official website.
How Much Funding Has Virta Health Raised?
- Series A
- Amount Raised: $37 million
- Date: March 2017
- Lead Investors: Venrock, Allen & Company, Obvious Ventures, Redmile Group, Scifi VC
- Motivation Behind the Round: To study new treatment options that could reverse type 2 diabetes and support the company's mission to reverse diabetes in 100 million people by 2025.
- Series B
- Amount Raised: $45 million
- Date: April 2018
- Lead Investors: Founders Fund, Playground Global
- Motivation Behind the Round: To further improve outcomes, scale the Virta Treatment, invest in growth, and enhance commercial capabilities to help millions of people suffering from reversible chronic diseases.
- Series C
- Amount Raised: $93 million
- Date: January 2020
- Lead Investors: Caffeinated Capital
- Motivation Behind the Round: To combat the growing prevalence of Type 2 Diabetes, meet the demand for T2D reversal from employers, health plans, and government entities, and invest in further research to expand treatment to other diseases.
- Series D
- Amount Raised: $65 million
- Date: December 2020
- Lead Investors: Sequoia Capital Global Equities
- Motivation Behind the Round: To support the growing demand for Virta’s reversal treatments for type 2 diabetes and other chronic metabolic conditions, accelerate investments in growth, scale the provider-led virtual care delivery platform, and expand research and development of evidence-based, non-pharmaceutical therapies for other complex and costly metabolic conditions.
- Series E
- Amount Raised: $133 million
- Date: April 2021
- Lead Investors: Tiger Global
- Valuation at Round: $2 billion
- Motivation Behind the Round: To accelerate efforts to drive widespread adoption of Virta's telehealth-powered diabetes reversal treatment, support growth in research and product innovation, and meet the demand from employers, health plans, and government entities.
In total, Virta Health has raised $373 million and is currently valued at $2 billion.
Key Investors
- Tiger Global
- Details: Tiger Global is a leading global investment firm that focuses on private and public companies in various sectors. They have a strong track record of backing high-growth companies.
- Investment Focus Areas: Technology, telecommunications, media, consumer, industrial sectors.
- Notable Investments: Facebook, LinkedIn, Spotify, Stripe.
- Sequoia Capital Global Equities
- Details: Sequoia Capital Global Equities extends Sequoia’s technology investing efforts into the public markets. They focus on identifying disruptive technology themes and investing in long-term winners.
- Investment Focus Areas: Disruptive technology, public companies, late-stage private companies.
- Notable Investments: Sequoia-backed companies account for more than 20% of NASDAQ's total value.
- Venrock
- Details: Venrock is a venture capital firm with a rich history of investing in healthcare and technology. They have been early backers of some of the most successful companies in these sectors.
- Investment Focus Areas: Healthcare, technology, energy.
- Notable Investments: Apple, Intel, Gilead Sciences.
- Obvious Ventures
- Details: Founded by Ev Williams, Obvious Ventures focuses on companies that aim to make a positive impact on the world. They invest in businesses that combine profit and purpose.
- Investment Focus Areas: Sustainable systems, healthy living, people power.
- Notable Investments: Beyond Meat, Medium, Diamond Foundry.
- Scifi VC
- Details: Founded by Max Levchin, Scifi VC invests in transformative technology companies. They focus on innovation and have a portfolio of companies that are changing industries.
- Investment Focus Areas: Technology, innovation.
- Notable Investments: Affirm, Glow, Evernote.
What's Next for Virta Health?
Virta Health stands at the cusp of a significant opportunity to revolutionize diabetes care. With nearly half of U.S. adults affected by type 2 diabetes or prediabetes, the potential market is vast. The company’s telehealth-powered diabetes reversal treatment is in high demand from large employers, health plans, and government entities. This growth trajectory, coupled with a 200% year-over-year increase in their customer base, positions Virta Health to make a substantial impact on the $400 billion diabetes epidemic in the U.S.
Future fundraising efforts are likely to focus on scaling their telehealth services and expanding their reach. The recent Series E round, which valued the company at $2 billion, indicates strong investor confidence. However, challenges such as competition from other telehealth providers, ensuring patient adherence, and navigating regulatory landscapes remain. As Virta Health continues to grow, strategic partnerships and technological advancements will be crucial in overcoming these hurdles and achieving their mission of reversing diabetes for millions.
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