Firefly Health Closes $40M Series B Led by Andreessen Horowitz (a16z)
Firefly Health - a virtual-first healthcare company with a mission of delivering half-priced healthcare that's twice as good - today announced that it has closed $40M in Series B financing led by Andreessen Horowitz (a16z). Existing investors F-Prime Capital and Oak HC/FT also participated in the round. As part of the round, a16z General Partner Julie Yoo will join the Firefly Health board.
The funding comes at a time when healthcare costs continue to skyrocket for employers, yet employees still demonstrate low interest and engagement in available care. With chronic and other behaviorally-determined conditions now making up over 80% of healthcare costs1, ongoing care and behavioral adjustments are key to controlling healthcare spend.
For employers, rethinking how they can center their healthcare strategy around the delivery and financing of comprehensive care can be a clear way to drive towards more predictable health care costs. Comprehensive care enables better care triage, shifts patients away from high cost settings, reduces specialist costs and unnecessary referrals, while intelligent network management helps patients navigate an otherwise byzantine healthcare system. Furthermore, it can increase member engagement and satisfaction, improving chronic conditions and helping more members meet their health goals.
"Virtual primary care saw tremendous growth over the last year. But, disconnected, episodic care -virtual or not - does not address the overly burdensome, wildly expensive process patients typically face in the healthcare system. We are a virtual-first healthcare delivery system with primary care providers, virtual specialists and behavioral health providers that is complemented by a network of physical facility partners and underpinned by a powerful technology-enabled operating platform," said Firefly CEO, Fay Rotenberg. "Our model, packaged as a full health benefit, makes half-priced healthcare that i twice as good clinically and emotionally a reality for all our patients."
Founded by experienced primary care leaders and technology entrepreneurs, Firefly cracks the primary care code through supreme convenience, proactive support, and intelligent navigation. Every patient is assigned a dedicated care team for continuous, evidence-based virtual and in-person coaching and support. The company's partnership network also includes on-site access to urgent care providers, home care providers, well-renowned specialty care organizations, such as Dana Farber and Joslin, as well as many specialty partners. Firefly's comprehensive primary care approach has delivered demonstrated clinical and financial outcomes, including:
? 30+% savings on employee healthcare costs through triage of care away from high cost settings, reduction of specialist costs, unnecessary referrals, and intelligent network
? 52% decrease in ER visits
? 50% of obese patients have lost >5% of their weight within one year of joining Firefly
The company currently operates in Massachusetts, Maine, New York, and New Jersey and is expanding into several new markets this year. Building on the success of the Firefly platform, the company will be launching a new health plan offering, powered by its comprehensive primary care approach, later this year to further empower navigation and incentivize members and sponsors with direct savings. Through a highly customizable benefit design, the Firefly Plan will reward intelligent choices around lifestyle and care navigation with direct savings to members and employers.
Firefly's Executive Chairman, Jonathan Bush, added, "Today's investment will meaningfully accelerate Firefly's ability to go national and bring to market a full benefit plan, truly allowing us to bend the cost curve and further differentiate our platform to the employer community. The addition of a16z to an investor syndicate of health technology standouts Oak HC/FT and F-Prime Capital, adds an investor with a broad view of the opportunity for technology to change the game across industries, strong connectivity to important employer end markets, and entrepreneur-driven healthcare sensibility and expertise."
a16z General Partner Julie Yoo will join the Firefly board of directors. a16z healthcare investments include Devoted Health, Omada Health, Accolade and Cedar among others.
Yoo commented, "Firefly fits squarely into several of our investment theses around primary care and the modern health benefits stack. It's rare to see a company that delivers on a value-based care model, while also having a tech platform that connects its care teams, patients, and outside referral partners in both the online and offline world. We're excited to support Fay and her team as Firefly accelerates the growth of its care delivery and benefits platform to bring affordable, delightful navigation, primary care, behavioral health, and virtual specialty care to the commercial and individual insurance markets."
About Firefly Health
Firefly Health offers empathy-driven comprehensive care, administered by a world-class clinical team and network of trusted clinical partners, powered by intuitive technology built around people. By breaking down the barriers between primary care, behavioral health, and specialty care, we create an experience that is unrivaled in healthcare (or any other industry). Our mission is to deliver half-priced healthcare that's twice as good, clinically and emotionally. Simply put, it's the care you deserve. For more information, visit www.firefly.health.
1Centers for Disease Control and Prevention
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