Home care startup Tomorrow Health raised $60 million in Series B funding led by BOND Capital, co-founder and CEO Vijay Kedar tells Axios exclusively.
Why it matters: Health care is moving beyond the four walls of the hospital, fueled by COVID, cost-cutting measures and rapidly changing patient and provider preferences.
- Despite this, the home care sector remains highly fragmented, with thousands of disconnected vendors and suppliers offering one slice of the delivery and deployment pie.
- That’s left room for disruptive new entrants such as Tomorrow to try and streamline the process. Other recent deals include Best Buy acquiring hospital-at-home startup Current Health for $400 million, remote monitoring startup Athelas raising $132 million, and home care company Biofourmis raising $300 million
- “Payers are realizing they want and need patients at home, but there’s still no infrastructure to support that,” says BOND Capital general partner Noah Knauf.
Deal details: BOND was joined by Andreessen Horowitz, Obvious Ventures, Sound Ventures and BoxGroup.
- Proceeds will be used to expand into more geographic markets, and brings Tomorrow’s total funding to $93 million.
How it works: Tomorrow contracts with payers to match patients with suppliers and promises to decrease fragmentation and delays in the sector by tracking the delivery and deployment process.
- It serves nine million people in the U.S. and partners with 126 health plans and hospital systems across 29 states.
One fun thing: Tomorrow’s values — which it sends to every interview candidate and uses to determine staff promotions — includes a promise to “Fight like hell for patients.”
State of play: While the home care sector is beginning to be shaken up by new players, much of the attention still centers around a small segment of the market — helping people to recover after a hospital stay.
- Kedar hopes Tomorrow can help move the needle further forward by enabling people to remain healthy or get treatment at home, potentially before even needing a hospital stay.
- “What we’d like to enable is a shift from the home being a post-acute setting of care to where the home is a pre-acute setting of care,” he says. That way, we can “prevent not just hospital re-admissions but admissions.”