The COVID-19 pandemic has highlighted the issue of access to healthcare in the US, with many startups entering the digital health space to address the problems. Although initial investor interest was high, with startups focusing on telehealth primary care and chat-based therapy, there has since been a drop in investment. Many investors are uncertain about the adoption and customer acquisition of these startups. However, digital health startup Caraway has recently raised an oversubscribed $16.8 million series A round, demonstrating what VCs find attractive in the sector.
Caraway is a digital health startup that offers 24/7 access to physical and mental health resources aimed at Gen Z customers. Its integrated healthcare service includes doctors and nurses who are available for text chats and calls, and tools that help customers maintain and respond to mental and physical health issues in between appointments. The app is licensed to operate in ten states and aims to eliminate barriers to accessing healthcare.
Founder Lori Evans Bernstein was inspired to create the startup after talking to her niece about the difficulties she faced in obtaining treatment for a reaction to an unknown allergy. After 15 weeks of waiting for appointments, her niece gave up and hoped the issue would go away. Evans Bernstein realized the lack of access to care and started Caraway to address the issue.
While VC investment in digital health has dropped to $3.4 billion in Q1 2023 from a peak of $15.1 billion in Q2 2021, VCs are still interested in startups that go beyond offering basic healthcare services. Caraway’s success demonstrates that startups that offer innovative healthcare solutions and targeted services have the potential to attract investment in the current climate.
Frequently Asked Questions (FAQs) Related to the Above News
What is Caraway?
Caraway is a digital health startup that offers 24/7 access to physical and mental health resources designed for Gen Z customers.
What kind of services does Caraway offer?
Caraway provides an integrated healthcare service that includes doctors and nurses who are available for text chats and calls, and tools that help customers maintain and respond to mental and physical health issues in between appointments.
What inspired the founder of Caraway to create the startup?
The founder of Caraway, Lori Evans Bernstein, was inspired to create the startup after talking to her niece about the difficulties she faced in obtaining treatment for an unknown allergy. After 15 weeks of waiting for appointments, her niece gave up and hoped the issue would go away. This inspired Evans Bernstein to address the issue of lack of access to care and start Caraway.
How many states is Caraway licensed to operate in?
The Caraway app is licensed to operate in ten states.
Has there been a drop in investor interest in digital health startups?
Yes, there has been a drop in investor interest in digital health startups as initial excitement has leveled out, and investors are now uncertain about the adoption and customer acquisition of these startups.
How much money did Caraway raise in its series A round?
Caraway raised an oversubscribed $16.8 million in its series A funding round.
What kind of startups are still attracting investment in the digital health space?
Startups that offer innovative healthcare solutions and targeted services have the potential to attract investment in the current climate, as demonstrated by Caraway's success.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
