WellTok Closes $18.7M Series B Funding: Appoints Jeff Margolis as CEO Emergence Capital Partners and InterWest Partners co-lead round
DENVER, April 10, 2013 /PRNewswire/ -- WellTok®, Inc., developer of CaféWell®, the leading Social Health Management® platform that drives increased consumer engagement in health activities sponsored by their health plans, today announced that it has closed a Series B funding with investments from Emergence Capital Partners, InterWest Partners and New Enterprise Associates (NEA). The company plans to use the funding to accelerate product development and strategic partnership efforts, expand into new markets, and build account teams to support the rapidly growing base of clients.
In conjunction with the financing, Jeff Margolis, who served as the company's executive chairman for the past eighteen months, was appointed chief executive officer. Margolis is one of the healthcare information technology industry's most successful leaders, having founded and led TriZetto® as CEO from start-up, through IPO, to a $1.4 billion LBO. In addition to pioneering the first commercially successful SaaS enterprise in healthcare, he brings strategic healthcare industry knowledge and the expertise to quickly monetize and scale the business.
"I am particularly pleased to be working with this incredibly strong consortium of visionary investors who have highly relevant portfolio expertise that can be leveraged to grow WellTok and the CaféWell platform," said Jeff Margolis. "We are addressing the significant challenges consumers face as they try to optimize their own health in partnership with their plans and providers, and have built new support structures that combine the best in purpose-driven social, community, personalization and gaming technologies."
Since its commercial launch in late 2011, WellTok's CaféWell social health network has become the leading platform for health plans and other population managers, with two of the nation's five largest health plan organizations among its customers. The company is currently contracted to serve nearly 10 million consumers on its flagship CaféWell platform, and is looking to sign its tenth customer in the coming months. Privacy, anonymity and security are fundamental to CaféWell and WellTok is HITRUST CSF Certified.
Through its personalized tools, compelling content, gaming/incentive platform and vibrant community, CaféWell's ability to provide a fun and rewarding health experience for consumers has resulted in engagement rates above 400% of industry average. Health plan members in these programs average 50 minutes per month on the site with a third participating in over 30 CaféWell engagement activities. Return on investment is rapid, as consumer brand affinity toward the population manager increases along with healthy activities. For example, members of two pedometer-based CaféWell programs have walked 5 billion steps in the last 18 months.
One of the innovative health plans to roll out the CaféWell platform is Coventry HealthAmerica, where David Fields is the chief executive officer. Fields commented, "Based on the health improvements and member engagement in our Race to the Moon™ wellness challenge, we are looking to expand the use of CaféWell for chronic conditions, care management and quality improvement, furthering Coventry HealthAmerica's leadership in serving its employers and members."
WellTok's Social Health Management® platform-as-a-service strategy combines healthcare system knowledge and many significant advancements in consumer-empowering technologies to give healthcare population managers, such as health plans and accountable care organizations, a comprehensive solution that makes health more fun and more rewarding for everyone – while allowing consumers to control anonymity.
"Welltok's CaféWell platform has quickly become the platform of choice for health care population managers who recognize the importance of engaging with consumers," said Kevin Spain, general partner at Emergence Capital. "We have a great deal of confidence in Jeff Margolis and believe the company is well-positioned to build on its leadership position."
"Jeff is one of the very few proven entrepreneurs who really understands the big picture in healthcare and why previous efforts to engage consumers in health management programs have failed," said Nina Kjellson from InterWest Partners. "He has built a half-billion dollar healthcare I.T. business before, and with the talented team at WellTok, we are excited to help him do it again."
About CaféWell® and WellTok®, Inc.
CaféWell is a social health network that makes getting better connected to your health and fitness more fun and more rewarding. CaféWell provides one stop for consumers' health, wellness and fitness across an array of proprietary and third-party engagement activities, including fun health challenges with other users; compelling economic and social rewards; social networking; advice from experts, peers and veteran professional athletes; and reliable health and fitness information.
Healthcare population managers such as health plans and employer groups, sponsor their members into CaféWell. In return, those population managers gain the use of a neutral, trusted consumer communications channel; build consumers' affinity with their brand; positively engage consumers with their health; and increase members' healthy behaviors. CaféWell can be used to power base participatory wellness programs, device-integrated wellness programs and chronic condition programs that drive high value at a significantly lower cost than traditional disease management and wellness programs.
Institutional and strategic investors with continuing investment in the company include Miramar Venture Partners, Okapi Venture Capital and TriZetto Corporation. WellTok, Inc. is headquartered in Denver, Colo. To learn more about CaféWell's ability to engage members and consumers, visit www.cafewell.com and www.welltok.com. To learn more about social health management, visit Jeff Margolis explains Social Health Management.
SOURCE WellTok, Inc.