Tomorrow Health, an NYC tech startup helping patients get home health equipment, announced Thursday it has closed on a $25 million Series A round led by Andreessen Horowitz, with participation from Obvious Ventures and BoxGroup. The company says it plans to use this fresh funding to grow its team and expand its infrastructure technology to help more people receive home-based care.
“We believe the home should be a patient’s primary point of care, and we are focused on providing patients with the right products, guidance and support to make that a reality,” co-founder and CEO Vijay Kedar said in a statement. “One size does not fit all in healthcare or medical equipment. From walkers and rollators after a fall, to oxygen concentrators and respiratory supplies for COPD and ongoing recovery from COVID-19, it is essential that patients receive equipment tailored to their conditions with speed and reliability.”
Tomorrow Health works to do just that, removing the “stress and complexity that have become synonymous with navigating at-home care,” Kedar added. The company streamlines this cumbersome process by coordinating with a network of suppliers to ensure equipment is delivered to people’s homes with ease, while also helping patients navigate insurance and benefits.
This funding round is just one of many recent investments Andreessen Horowitz has made in companies working to simplify healthcare for patients. Recent notable investments include a $220 million Series E for Komodo Health, a Bay Area startup using AI to help healthcare facilities address patient needs and improve engagement, and a $200 million Series D for NYC-based healthcare billing tech startup Cedar.
As for Tomorrow Health, Andreessen Horowitz partner Julie Yoo says its “holistic solution” is tackling “each fragmented step” in the home healthcare process, bringing it out of what she called the “Dark Ages.”
“Tomorrow Health is setting a new, patient-first standard for how we improve the process,” Yoo said in a statement. “The platform’s critical technology infrastructure offers increased visibility and value in payors, provides tools for operational efficiency for durable medical equipment suppliers, and saves providers and their staff time spent on coordination so they can focus on patient care.”
Although it has only been around for about a year, Tomorrow Health has already partnered with more than 120 health plans and hospitals across 29 states, and attributes an increased demand for home-based care to the COVID-19 pandemic.
This heightened demand doesn’t appear to be going away anytime soon either. Tomorrow Health says one in four aging people use durable medical equipment like walkers and oxygen tanks, and 10 percent of COVID-19 patients have ongoing symptoms that require this kind of gear too, which means the industry is expected to be worth more than $75 billion as of this year in the United States alone.
“From a population health standpoint, there are few areas of greater importance than the safe transition of patients to home-based healthcare,” Roy Beveridge, a former executive at Humana who will be joining Tomorrow Health’s advisor board, said in a statement. “During a critical and often stressful time for patients and caregivers, the patient-first mentality of the Tomorrow Health platform delivers an unprecedented level of care that supports patients and their families as they navigate their home-based healthcare needs.”
