Telehealth startup American Well announced a $80 million funding round Tuesday, capping a big year in funding for telehealth startups.
The capital injection will be used to serve a number of big projects the firm has underway, company co-CEO Dr. Ido Schoenberg said in an interview. Among those are campaigning to ease regulatory constraints, scaling its provider networks and customer outreach, working with insurers to secure more favorable reimbursement and working on its technology, he said.
American Well provides a network of physicians, through its app and website, and video software to partners.
While the firm is not yet profitable, it has seen significant growth, particularly in mobile, which accounted for 1.1 million downloads year-to-date in Android and iOS devices. Enrollment, which American Well defines as downloading, signing up and providing credit card information, grew close to 1,000% year over year, Schoenberg said.
Telehealth and video visits have been perhaps the hottest growth area in digital health recently, said consultant Lisa Suennen. The growth comes primarily because of increased reimbursement for video visits from insurers. “The tech has been around for years but the payers just arrived,” she said.