Growth Evaluation: Early Stage Heath Tech Startups

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Early-stage Health Tech Start-ups

Noom, Progyny, Arcadia, and On Target Health are health tech startup companies that have seen substantial growth over the past three years. These companies all employ a strategy that focuses on providing unique and custom services based on the clients' individual needs. Noom, Progyny, and On Target Health focus on the utilization of mobile apps to increase sales. Arcadia, Progyny, and On Target Health also focus their efforts on marketing their technology and services to businesses and organizations to increase sales.

NOOM

  • Noom is a startup health tech company that focuses on helping people make behavior changes to create healthier lifestyles. Noom focuses on weight loss and is now including technology to help with chronic health conditions.
  • The Noom app was released on May 9, 2013. As of December 2019, SensorTower shows there have been over 300k downloads from iTunes.
  • Noom makes sales through its mobile app. Noom states that the app is free to download and offers a 14-day free trial. After the free trial, clients can purchase monthly plans.
  • Noom uses artificial intelligence to create a personalized health coach for each of their clients.
  • Noom has a strategy of focusing on creating unique solutions for all its clients. The Noom official website states that their areas of focus are diabetes prevention and management, hypertension prevention and management, and healthy weight.
  • Noom reports seeing significant results in their clients including 64% of clients losing 5% of their body weight, 83% of diabetic clients gaining control of their blood glucose, and 84% of clients completing their program.
  • According to MobiHealthNews, between 2016 and 2018, Noom grew 1,938%.
  • MobiHealthNews reports that Noom brought in $58 million on May 6, 2019, from several investors including Oscar Health and Scooter Braun.

PROGYNY

  • According to MobiHealthNews, Progyny focuses on providing consumers with a digital platform to find fertility services. The app shows services such as egg freezing, in vitro fertilization, and doctor consultations.
  • Progyny has a strategy that focuses on providing care that is focused on each individual's unique needs. They have a Smart Cycle design which allows their client to choose treatments that are ideal for their situations. Some treatments offered are egg freezing, surrogacy, and adoption.
  • Progyny has a Smart Cycle benefit plan that covers all treatment costs as a way to eliminate financial concerns for their clients.
  • Progyny makes sales through marketing their Fertility coverage and benefits to employers. Employers can purchase Progyny's fertility plan which they can then offer to their employees.
  • Progyny has also developed an app to help those who are in the fertility process. The app features games, exercises, and activities to generate mindfulness as well as provide a supportive community for Progyny members.
  • MobiHealthNews reports that in 2018, Progyny had an annual revenue of $156 million. Progyny also had a three-year growth rate of 6,900%.
  • Progyny reported having a 120% increase in its revenue in the third quarter of 2019. Progyny had a revenue of $27,798 in the third quarter of 2018 and a revenue of $61,196 in 2019.
  • Between the third quarter of 2018 and the third quarter of 2019, Progyny saw their profits increase by $7,273

ARCADIA

  • Arcadia is a health tech company that focuses on providing healthcare organizations with the technology they need to analyze data.
  • They make sales through their Get Started page on the company website where healthcare organizations can request services and information from Arcadia.
  • Arcadia's strategy focuses on providing their clients with data analysis that focuses on each client's organizational goals and values.
  • Some services Arcadia offers are quality improvement, care management, clinically enhanced risk adjustment, patient management, and contract analysis.
  • According to MobiHealthNews, Arcadia had an annual revenue of $35.4 million in 2018 and grew 133% over the past three years.

ON TARGET HEALTH

  • On Target Health is a startup health tech company that focuses on developing weight loss programs that are customized for each client.
  • On Target Health offers its clients a mobile app which allows them to be connected with their coaches at all times. The app includes features like calorie tracking, meal planning, educational videos, and nutritional content.
  • On Target Health sells its health programs. They target organizations that wish to offer health coaches and programs to their employees.
  • According to MobiHealthNews, On Target Health had an annual income of $2.1 million in 2018 and grew 165% over the past three years.

RESEARCH STRATEGY

We first identified leading startup companies in the health tech industry that are still in the early stage of development. MobiHealthNews was a valuable resource utilized to identify top startups in the industry. We searched for companies that grew more than 130% over the past three years and had an annual income over $2 million. Annual reports and business reports were searched to find more information about sales and profits; however, most of the companies do not have annual reports available to the public. Progyny release a quarterly report which was used to further analyze their growth in revenue. Company websites were then analyzed to evaluate business strategies and business focuses.
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Quotes
  • "Noom. 2018 revenue: $61.1 million. Noom’s platform is focused on creating behavioral health changes related to weight loss, fitness and certain chronic health conditions. Its signature mobile product is called the Noom Weight Loss Coach, in which users are paired with a dedicated human health coach based on their lifestyle and preferences. The startup is also employing AI to help personalize the experience for its users. The company raised $58 million just a few months ago, and has grown 1,938% between 2016 and 2018. Site. "
Quotes
  • "We work with customers across the globe to help them create healthier habits, reduce their risk of chronic health problems, reverse disease, and foster healthier relationships with themselves in the process."
Quotes
  • "We do not believe in a one-size-fits-all solution. We recognize that the conditions you treat are unique - and believe that basic tracking applications are not enough to improve patient engagement - real behavior change is the key."
Quotes
  • "Nutrition and chronic condition management focused health tech startup Noom landed a whooping $58 million in new financing this morning. Sequoia Capital led the round with participation from Aglae Ventures, Samsung Ventures, and a number of individual investors including Whats App cofounder Jan Koum, DoorDash cofounder Tony Xu, and Oscar Health cofounder Scooter Braun. "
  • ""Noom is by far one of the fastest growing companies that we are in business with globally. Sequoia is thrilled to partner with the Noom team as they help people achieve healthier lives," Michael Abramson, partner at Sequoia and Noom board member, said in a statement."
  • "The new funding is expected to help the company grow their team and build their customer service capabilities. "
Quotes
  • "Noom does have an app that you can download for free. This feature allows you to log your meals, exercise, and fitness goals which is crucial to your long term success. "
  • "Noom offers three different plans that range from one month up to 4 months. If you’re looking to try it out for only 1 month, then it will cost you $59 for that one month of service. The 2 month plan will cost you $49.50/month and the 4 month plan which is the most popular plan, will cost you $32.50/month. Also the great thing about Noom is that you can cancel anytime."
Quotes
  • "Financial concerns should not get in the way of having a child. Our Smart Cycle benefit plan connects you to leading specialists and allows them to provide the most advanced, effective treatment, the first time — so you can forego unnecessary procedures and obtain the best chance of achieving a successful pregnancy in the shortest amount of time. Smart Cycle covers all of your office visits, tests and treatments. Which means you don’t have to worry about exhausting your coverage midway through your course of care."
  • "No two people facing fertility challenges are the same. That’s why our Smart Cycle design allows you to choose a treatment that best suits your needs. Our benefit plan covers a wide variety of options — all of which have been proven to help individuals just like you begin building families."
Quotes
  • "Anyone who has ever dealt with fertility challenges knows the impact they can have on our mental and emotional well-being. That’s why we’ve partnered with Happify to develop an exclusive app for those on the journey to fertility. Our proprietary digital tool features interactive mindfulness exercises you can do with your partner, as well as science-based games and activities to ease your mind. It also provides actionable communication strategies to use daily, and community forums where you can give and receive support from other members."
Quotes
  • "Reports 120% Increase in Third Quarter Revenue to $61.2 Million Issues Revenue Guidance of $65.0 to $66.5 Million for the Fourth Quarter of 2019"
Quotes
  • "Progyny’s unique, all-inclusive plan design focuses on outcomes rather than cost, which means fertility specialists can tailor treatment to each member’s unique needs. This smarter approach makes it possible for members and physicians to develop and pursue customized, effective treatments the first time, with the highest chance for a successful singleton pregnancy that’s healthier for both mother and baby."
  • "Comprehensive fertility and family building benefits — accessible to all —send an important message of inclusivity and support to a diverse workforce longing to start a family. It reinforces your company values and elevates family building as a priority. Whether you already offer fertility and family building benefits or are looking to add or expand them, our easy-to-implement solution helps your company get the most value from its benefit dollar."
Quotes
  • "We provide technology and expertise that enables even the most complex healthcare organizations to get, analyze and use the richest data to solve their most challenging issues."
Quotes
  • "Technology matters, but what you do with it matters more. The Arcadia Analytics platform of technology and MSO services supports all the applications required for successful value based care."
Quotes
  • " We’re here to help you get, analyze and use the richest data to solve your most challenging issues."
Quotes
  • "The On Target Health program is a patented process that measures body composition and metabolism, coupled with highly trained health coaches to focus on the behaviors that contribute to weight gain"
  • "Our holistic approach to weight management reduces chronic disease, eliminates the need for costly medications and improves the overall health and wellbeing of each participant."
  • "We are dedicated to providing you with the necessary tools for success on your weight loss journey. We understand that the real choices you make every day aren’t done in our offices, which is why we are bringing our program to your pocket!"
Quotes
  • "On Target Health introduces new licensing model to the market, allowing organizations with existing health coaches the ability to offer the program at reduced rates."
  • "On Target Health achieves $2m in annual revenue. Begins development of mobile application and backend operating platform."