UpStream Healthcare, which offers technology and support services for value-based primary care practices, raised $140 million in Series B funding.
The round was co-led by Coatue and Dragoneer with participation from investors including Avidity Partners, Define Ventures and Mubadala.
The Series B brings the startup’s total funding pot to nearly $185 million. UpStream had previously announced a $45 million Series A round in November 2021.
WHAT THEY DO
UpStream offers a tech platform and clinical support to practices that work with patients on Medicare and Medicare Advantage plans.
The startup provides embedded clinical support teams that can assist primary care practices, like pharmacists or care coordination nurses. There are also off-site teams that can assist practices or patients during off-hours.
UpStream’s tools include a tech platform that uses EHR data, claims from payers and information patients discussed with their care teams to identify patients who need support and improve clinical workflows. The startup also touts a model that provides payments for quality during the performance year, as opposed to payment received once the year has ended.
“Primary care physicians are an integral part of the U.S. healthcare system, and all share a mission to see their senior patients live healthy, independent lives free from the burden of chronic disease. However, they often lack the resources and technology to achieve their goals while also struggling to thrive financially in the value-based care era. That’s what UpStream brings to the table and is why we are seeing unprecedented adoption among major physician groups,” Dr. Sanjay Doddamani, cofounder and CEO of UpStream, said in a statement. “We’re honored to have attracted such a diverse and stellar mix of top investors – each of whom bring unique quality and experience that’ll be invaluable for us to continue growing.”
Though digital health funding has slowed significantly this year compared with 2021, several other startups pitching practice support and software have raised large rounds this year.
Alma, which focuses on mental health professionals, announced it had raised $130 million in Series D funding in August. Tebra, a startup that offers patient engagement and practice growth tools, scooped up $72 million over the summer. Mental health practice management company Grow Therapy announced a $75 million Series B in September.
In June, Aledade, which provides data analytics and support to help primary care providers build accountable care organizations, raised $123 million in a Series E funding round. According to Insider, the funding boosted the company’s valuation to $3.1 billion.