Health Sprinter Raises $ 33 Million To Join Home Health Care Race

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Health Sprinter Raises $ 33 Million To Join Home Health Care Race

Venture investors for years have been betting medical care will increasingly move out of hospitals and into lower-cost settings, such as the home. Covid-19 has propelled that movement, and now several investors are betting that the popularity of home healthcare, because of its convenience, will endure after the pandemic.

Menlo Park, Calif.-based Sprinter isn’t out to compete with DispatchHealth. Sprinter, which formed in January, sends nurses and phlebotomists to patient homes to perform more-routine services such as blood draws and Covid-19 testing. The company, whose investors include Andreessen Horowitz, targets customers such as health systems and telehealth companies seeking to extend their services to patient homes, said co-founder and Chief Technology Officer Cameron Behar.

“We’ll all see the benefits from the rise of home healthcare as an expectation and a reality,” he said.

Sprinter faces competition from other startups, such as Getlabs, which also sends phlebotomists to patient homes, but Mr. Behar said the market opportunity is large.

Story Highlights

  • Good day. Sprinter Health has collected $33 million in Series A financing to carve a niche out of the emerging home-healthcare industry, a sector that has gained more prominence because of the pandemic.

  • In March, for example, DispatchHealth, which can provide hospital-level care in the home, disclosed a $200 million financing that valued the company at $1.7 billion.

Fundraising surges. Healthcare venture capitalists are capitalizing on their recent investment successes by refueling with new funds.

U.S. venture firms focusing mainly on healthcare have raised $44.8 billion across 183 funds through Oct. 11, compared with $43.5 billion through 264 funds in all of last year, according to market tracker PitchBook Data Inc.

A strong market for biomedical initial public offerings and acquisitions has enabled medical venture capitalists to quickly generate returns for their investors. Now, many are rounding up new and larger funds. The quickening pace of innovation and a favorable regulatory environment are combining to create promising investment opportunities, some venture capitalists said.

$44.8 Billion The amount that U.S. venture firms investing mainly in healthcare have raised this year, as of Oct. 11, according to market tracker PitchBook Data Inc.

Apple Studying Potential of AirPods as Health Device Apple Inc. is studying ways to make AirPods into a health device, including for enhancing hearing, reading body temperature and monitoring posture, according to documents reviewed by The Wall Street Journal and people familiar with the plans. The plans further demonstrate Apple’s ambition to add health and wellness features to devices beyond the Apple Watch, where most of the company’s health functions exist today. Apple is also working on technology that aims to use iPhones to help diagnose depression and cognitive decline, the Journal reported last month.

Mindbody Inc., a wellness experience technology company backed by private-equity firm Vista Equity Partners, agreed to buy fitness and wellness subscription service ClassPass. Alongside the acquisition, Mindbody secured an investment of $500 million from a group including investment firm Sixth Street. Founded in 2013, ClassPass is backed by a slew of private equity and venture capital firms including L Catterton, Apax Partners, GV, CRV, General Catalyst, Mayfield Fund, M13 and Thrive Capital. Labster, a producer of virtual laboratory simulations, agreed to acquire UbiSim Inc., a Montreal-based virtual-reality training platform for nursing, for an undisclosed amount. Early this year, Copenhagen-based Labster said it had raised $60 million in Series C financing from Andreessen Horowitz, GGV Capital, Owl Ventures, Balderton Capital, Northzone, Swisscom Ventures and EduCapital.

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