Healthcare company 98point6 landed additional investment to support its transition to a licensor of virtual care solutions, following a move to offload parts of its business.
The fresh funding comes after the Seattle startup announced plans in March to sell its virtual care platform and primary care business to San Francisco-based startup Transcarent for $100 million in cash and equity.
A SEC filing related to the funding shows $30.7 million raised through a blend of debt and options. Axios, which first reported the news, said the company raised $32 million. A 98point6 representative pointed to the SEC filing when asked for clarification.
98point6 previously connected users in real-time to its own doctors alongside an AI-powered chatbot, texts, and digital images. It relaunched as 98point6 Technologies, a software-only company focused on licensing its tech to third-party healthcare providers.
The latest investment will be used to scale the software business and develop new innovations such as data modeling and artificial intelligence, according to a statement from the company’s CEO Jay Burrell.
Private equity giant L Catterton and late-stage investment firm Activant Capital led the round; both invested in an earlier round in September. Transcarent, the startup that bought parts of 98point6’s business, also participated.
The new funding marks the latest chapter in a startup journey that began in 2015 and included nearly $300 million of venture capital raised; rapid growth during the pandemic; an abrupt leadership change in 2021; and layoffs.
In September, 98point6 announced a deal with Tacoma, Wash.-based MultiCare Health System, the company’s first foray as a third-party software provider.
Burrell was promoted from chief commercial officer in February 2022. He replaced Jeff Greenstein, the company’s chairman who took over interim leadership duties following the departure of former CEO and co-founder Robbie Cape in August 2021.
98point6 has about 120 employees, according to a spokesperson.
