Following a decision to offload portions of its business, the healthcare company 98point6 secured additional funding to assist its transition to a licensor of virtual care solutions.
The new funding comes after the Seattle startup revealed intentions to sell its primary care business and virtual care platform to Transparent, a San Francisco-based startup, for $100 million in cash and shares, in March.
$30.7 million was raised using a combination of debt and options, according to an SEC filing regarding the funding. The story was initially reported by Axios, which stated that the startup had raised $32 million. When contacted for more information, a 98point6 representative referred to the SEC filing.
98point6 previously provided real-time access to its own doctors for users via a chatbot powered by AI, texts, and digital photos. It reopened under the name 98point6 Technologies, a software-only business that specializes in licensing its technology to outside healthcare providers.
According to a statement from the company’s CEO Jay Burrell, the most recent investment will be used to scale the software business and create fresh ideas like data modeling and artificial intelligence.
The financing was led by late-stage investment company Activant Capital and private equity goliath L Catterton, both of which had previously invested in a previous round in September. Transparent, the startup that acquired some of 98point6’s operations, also took part.
In a startup’s story that started in 2015 and involved roughly $300 million in venture financing raised, quick expansion during the epidemic, an unexpected leadership transition in 2021, and layoffs, the new funding represents the most recent chapter.
The Tacoma, Washington-based MultiCare Health System agreement marked 98point6’s entry into the market for outside software in September.
In February 2022, Burrell received a promotion from chief commercial officer. He succeeded Jeff Greenstein, who had served as the company’s chairman during Jeff Greenstein’s interim tenure as CEO and co-founder, which began in August 2021.
98point6 employs roughly 120 people, a spokeswoman said.
