NEW YORK, May 12, 2020 /PRNewswire/ -- Stellar Health, a rapidly growing value-based healthcare technology company headquartered in New York City, announced today that it has raised over $10 million in Series A funding. The round was led by Point72 Ventures, a VC firm that backs early-stage startups who are catalyzing the future of their industries. Existing investors also participated in the round, including Primary Venture Partners.
Founded in 2018 by likeminded healthcare leaders and an experienced Google engineer, Stellar Health is working to improve the delivery of value-based care (VBC). Historically, the healthcare system has been organized around treating the sick and compensating providers on the volume of services ordered, an arrangement commonly known as fee-for-service. Value-based delivery rewards providers for the quality of care they give to their patients. VBC is important because it emphasizes keeping patients healthy, lowering the overall cost of care, and compensates providers based on outcomes, rather than the quantity of care given to their patients. Stellar Health's cloud-based, point-of-care platform encourages VBC by pushing meaningful, actionable insights right to end users: providers and their practice staff. By tracking data and actions, Stellar Health helps primary care providers achieve value-based care goals for their patients and rewards them with real-time incentives.
"There are so many exciting implementations going on at Stellar Health and we are thrilled to partner with Point72 Ventures and other investors to take this company to the next level," said Michael Meng, Stellar Health's Co-Founder and CEO. "Bringing in outside capital and experience will not only advance the development of our company but will continue our growth to meet and exceed client needs and expectations in value-based care."
"Stellar Health has the potential to transform healthcare by increasing the number of providers who successfully adopt value-based care models," said Sri Chandrasekar, Partner at Point72 Ventures. "They have developed a sophisticated and intuitive platform to drive VBC in the U.S. and we are excited to help them build on that momentum."
Brad Svrluga, Co-Founder and General Partner at Primary Venture Partners, added, "Stellar Health's success has been achieved as a result of their focus on value-based care outcomes, high standards of data security compliance and most importantly, their strong commitment to their clients. We are excited to partner with Point72 to leverage our mutual strengths to support Stellar Health's growth in existing and targeted payor and provider markets."
Stellar Health has developed a robust payor and provider network across 11 states in the U.S. With the additional capital and resources provided by this new round of funding, the company will expand and accelerate product development and engineering, and support operations including the expansion of services to new markets. The company also plans to double the size of its team within the next year and is looking to hire across multiple departments, including Engineering, Product, Operations, and Business Development. These actions will help Stellar Health meet growing client demand and increase the number of patients on its platform. By the end of 2020, Stellar Health expects to have 100,000 patient lives managed through their platform.
About Stellar Health: Stellar Health is a point-of-care, cloud-based platform that activates primary care providers to achieve value-based care (VBC) goals that improve patient outcomes, such as improving quality scores and optimizing the patient care journey through transitions of care and high-value referrals. The Stellar platform helps primary care providers continually engage with their patients by providing them real-time information and tangible action-based incentives for improving quality of care. Stellar Health's mission is to enable all providers to engage and succeed in VBC by bridging the incentive gap between providers and payors. If you would like more information, please contact Stellar Health at [email protected] or visit their website at www.stellar.health.
About Point72 Ventures: Point72 Ventures is a global venture capital firm led by a diverse set of domain experts with the capital to lead rounds through all stages of a company's growth. The firm invests primarily in Fintech, AI/ML, and Enterprise technologies. As an independent arm of Point72, the global asset management firm led by Steven A. Cohen, Point72 Ventures offers well-informed insights into the global economy. Point72 Ventures has offices in New York City, Palo Alto, California, and Stamford, Connecticut. For more information, visit their website at http://p72.vc/.
SOURCE Stellar Health