Harbor Health, a primary and specialty clinic group, said it received $95.5 million in a Series A extension funding round on Thursday.
Venture Capital firm General Catalyst led the funding round with participation from healthcare-focused venture firm Alta Partners and technology and biosciences-focused venture capital firm 8VC.
Read more: Digital health funding drops to lowest levels since 2019
Harbor provides primary and specialty care via in-person clinics, mobile units and telehealth. The company's revenue is evenly split between its fee-for-service business and value-based care arrangements.
Miller said the company, which exclusively operates in the Austin, Texas area, is focused on growing within the state. He said the company will not look to grow outside state lines in the short term and doesn't consider it a good business strategy.
“Coverage is run independently by 50 states,” said Harbor Health CEO Tony Miller. “This is one of the things I think the startup community did wrong in the Affordable Care Act insurers [market].”
The funding will help Harbor broaden its specialty care offerings to gastroenterology, psychiatry and radiology in 2024. Miller also said it would look to partner with hematology and oncology practices.
Harbor's round comes at a challenging time in venture capital funding. A report published Monday from research and digital health venture firm Rock Health revealed that digital health funding in 2023 dropped to the lowest level since in four years.
“I raised during the internet bubble and then in the internet crash,” Miller said. “I will tell you that the market today is much harder than that.”
Harbor Health last closed $32.6 million in funding in June 2022. The most recent round brings its total raised to $128 million.
Harbor provides its services to employers such as the Teachers Retirement System of Texas and the University of Texas and has a Medicare Advantage relationship with Blue Cross Blue Shield of Texas.
Harbor has eight physical locations, two mobile clinics and plans to open two additional locations this year.
