A Leading Provider of Primary Care Secures New Funding and Plans to Grow in New Markets
CHICAGO, Sept. 4, 2019 /PRNewswire/ -- VillageMD, a leading national provider of primary care, today announced its Series B funding round of $100 million. The round was led with $75 million from Kinnevik AB ("Kinnevik"), an international growth-focused investment company, along with a returning investment from Oak HC/FT and new investments from Town Hall Ventures and Adams Street Partners.
"As we continue to transform and disrupt the healthcare system, we want partners who embrace our mission of changing U.S. healthcare for the better," said Tim Barry, CEO and co-founder of VillageMD. "Partnering with these world-class investors, who share our vision and bring us fresh capital and new capabilities, allows us to impact more patients and ultimately improve the quality of care in our country."
Kinnevik, a growth-focused investment company listed in Sweden, has a long track record of backing founder-led, technology-enabled companies that have helped transform numerous industries, including telecom, media, retail and healthcare. Kinnevik was attracted by the entrepreneurial spirit of VillageMD's three co-founders, Clive Fields, M.D., Paul Martino and Barry, who started VillageMD in 2013.
"The primary-care physician is best placed to coordinate care delivery and arguably has the greatest influence on healthcare outcomes. VillageMD enables physicians to move towards a primary care-led, high-value and risk-bearing clinical model. Their technology, operational and clinical support capabilities have yielded best-in-market outcomes and proven results. We are delighted to partner with VillageMD towards delivering healthier patients, happier physicians and better outcomes," said Chris Bischoff, senior investment director at Kinnevik, who will join VillageMD's board of directors.
Three additional investors to date contributed to VillageMD's Series B round. Oak HC/FT, which led VillageMD's Series A and is co-founded by Annie Lamont, member of Forbes' Midas List; Town Hall Ventures, co-founded by Andy Slavitt, former acting administrator of the Centers for Medicare & Medicaid Services (CMS); and Adams Street Partners, an investment management firm with $38 billion of assets under management. Guggenheim Securities, LLC acted as the exclusive financial advisor to VillageMD.
VillageMD will use the funding from the capital raise to expand its primary care footprint in existing and new markets and enhance docOS, its market-leading primary care platform. It will also grow its Village Medical brand and scale its Village Medical at Home offering. VillageMD currently partners with more than 2,500 primary care physicians and manages $3 billion of total medical spend in value-based contracts.
VillageMD is a leading provider of healthcare for organizations moving toward a primary care-led, high-value clinical model. The VillageMD solution provides the tools, technology, operations, and staffing support needed for physicians to drive the highest quality clinical results across a population. VillageMD works with physician groups, independent practice associations, and health systems to improve quality, deliver a first-rate patient experience, and lower costs in the communities they serve. It has grown to include more than 2,500 physicians across eight markets and is responsible for approximately 500,000 lives and $3 billion in total medical spend in value-based contracts. To learn more, please visit www.villageMD.com.
Kinnevik is an industry-focused investment company with an entrepreneurial spirit. Our purpose is to build the digital consumer businesses that provide more and better choices. We do this by working in partnership with talented founders and management teams to create, invest in and lead fast-growing businesses. We believe in delivering both shareholder and social value by building well-governed companies that contribute positively to society. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik's shares are listed on Nasdaq Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.