Increased interest in telehealth helped Eko, a digital health specialist, raise $65 million in a series C round. The company has developed a platform of telehealth and AI algorithms for disease screening, and to launch a monitoring program for cardiopulmonary patients at home.
The firm focuses on lung and heart health. Connor Landgraf, CEO and co-founder of Eko spoke with MD+DI about the financing round and the impact the pandemic has had on telehealth.
“I think COVID-19 has definitely accelerated the transition to telehealth and it has further emphasized the need for remote monitoring technologies,” Landgraf told MD+DI. “I think the healthcare industry was already moving [this way], it was just moving at a slower pace. I think COVID-19 just accelerated a transition to telehealth that had been going on for a number of years.”
The financing was led by Highland Capital Partners and Questa Capital, with participation from Artis Ventures, DigiTx Partners, NTTVC, 3M Ventures, and other new and existing investors.
Proceeds from the financing will be used to expand in-clinic use of the company’s platform of telehealth and AI algorithms for disease screening, and to launch a monitoring program for cardiopulmonary patients at home.
“The massive market need for telehealth is not going away,” Rob Toews, principal at Highland Capital Partners, said in a release. “Regulatory and reimbursement changes have been underway to support this growth. Eko is uniquely positioned in this space because their technology addresses crucial clinical needs that other companies cannot satisfy, and Eko’s platform is very easy to deploy and scale. We are excited to partner with Eko in this next phase of their growth.”
The company has been pretty steady when it comes to raising financing. A little more than a year ago, Eko raised $20 million in its series B round in September of 2019. The digital health company brought in $5 million in 2018 for its series A round.
“We saw really significant growth from this year to last year,” Landgraf said. “We had pretty overwhelming demand.”
The series C round is one more accomplishment that takes place in what is shaping up to be a pivotal year for Eko.
Earlier this year, Eko won FDA clearance for a suite of algorithms that allowed its digital stethoscope to more accurately screen for heart conditions that include heart murmurs and atrial fibrillation (AFib) during routine physical exams. In May, the company launched its telehealth platform.