Minneapolis Startup RetraceHealth Sees $7m In VC Funding For Healthcare On Demand

retrace-wordmark-44-213-196-rgbRetraceHealth has raised $7m in venture capital to accelerate growth with new partner Lemhi Ventures, says CEO Thompson Aderinkomi.

RetraceHealth was founded in 2013 to make it easier than ever for people to get the medical care they need — while saving time and hassle along the way.

By combining video and house calls from pre-qualified local medical professionals, the service cuts cost from the system by reducing overhead and optimizing delivery via technology.

Depending on the individuals insurance position and specific needs, copay ranges from $60 for a remote visit to $300/year for membership, which is primarily offered through employers or payers, distributed in a B2B fashion.

“It’s not an easy choice for people to switch from a traditional approach of receiving their essential healthcare services,” Aderinkomi explains, “Yet it’s becoming increasingly common as we have proven to deliver greater value at a lower price than primary care.”

From a tech perspective, RetraceHealth’s platform is driven by CTO Steven Bayer with three core components that combine to form the innovation at hand: the patient telemedicine interface, coordination of physical care service, and a logistics network (blood, vaccines, lab tests, x-rays, etc).

Retrace has previously raised $1,000,000 of seed funding in two slices that began in May 2015 and closed in November that year.  In January, it became evident there were three strategic corportate investors: Blue Cross and Blue Shield of Minnesota (Blue Cross), HealthEast Care System (Minnesota), and McKesson Ventures.

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Aderinkomi says those investors also participated in this latest round, which was lead and largely claimed by Lemhi Ventures.

Formed in 2006 and based in Wayzata, Minnesota, Lemhi Ventures has an investment thesis focused around technology enabled health care services and is investing out of a $150m second fund.

“RetraceHealth finally delivers medical care consistent with the type of experience and service we have come to expect in every other facet of our lives — simple, convenient, tailored to an individual and family’s needs and when and where they want it,” said Jodi Hubler, managing director at Lemhi Ventures. “RetraceHealth balances being an in-network provider and disrupting the care delivery model. We look forward to supporting RetraceHealth’s growth.”

Hubler will join the RetraceHealth Board of Directors alongside Aderinkomi, Linda Hall, (former CEO of Minute Clinic), serial entrepreneur Kyle Rolfing (see: BrightHealth), and Doug Davenport, the CFO of Health East Care System.

The venture also has also racked up a diversity of angel investors, including Abir Sen, Paul Johnson, Randy Debruyn, Jeff Smedsrud, and Julie Sands-Caufey.

The new capital will be applied towards hiring more medical providers, continued development of the technology stack, and beefing up operations; 20 people are currently employed by RetraceHealth.

“These three things combined will allow us to expand our geography,” says Aderinkomi, with sights set on Wisconsin as their first out of state expansion beyond the seven county Twin Cities metro and Duluth, Minnesota.

Similar startups in the space include coastal competion from Pager in New York City and Heal, based in Los Angeles, California.

“We’re a true midwest startup elevating to the next level in what is undeniably a sea change of the healthcare industry,” Aderinkomi concludes.

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