Nomi Health, a company that offers health services straight to millions of Americans deprived of the need for third-party healthcare coverage, recently secured USD 110 million in Series A funding.
“Our Series A reflects the magnitude of the undertaking Nomi Health took on in a USD 3 trillion industry,” stated Mark Newman, Nomi Health’s founder and CEO. “Nomi’s influence demonstrates that those who designed our dysfunctional system are powerless to mend it.”
The organization began operations in 2019 and now serves nearly 30,000 customers every day in ten states. Nomi has contracts with universities, local governments, and enterprises to deliver essential health services including Covid-19 screening, immunizations, and treatments, along with other preventive tests. The firm also provides mobile care to schools, jails, public housing, farms, long-term care facilities, and factories.
The cash will be used to increase locations and the number of people the company personally cares for, as per Newman. The company will also recruit more technical and clinical personnel and strengthen its direct healthcare purchasing operation.
“Arbor investing in Nomi Health business as it overcomes one of the biggest issues in the US health system,” stated “Melissa Guzy, managing partner and co-founder of Arbor Ventures. “The major established healthcare firms are trapped with technological and operational inefficiencies and utilize 30 to 50 percent of every healthcare dollar,” she added.
The fundraising of Nomi shows broader aspects of digital health investment: more businesses are attracting venture funding quicker in their lifecycles.
As per Rock Health, digital health companies raised USD 21.3 billion in the first quarter of the year 2021, which is actually more than the value of USD 14.6 billion raised during the entire year of 2020. The average investment in the 541 acquisitions completed during nine months of 2021 was USD 39.4 million, up from USD 31.5 million in 2020.
Nomi isn’t the only company that has raised considerably more money than the average, 62 other firms have raised at least USD 100 million in 2021. However, Nomi’s fundraising is more in line with Series C, a later funding cycle in which generally older businesses receive an average of USD 114 million—than Series A, which has so far averaged USD 18 million in 2021.
Nomi made headlines earlier this year when she donated USD 2 million to help 176,000 Americans pay off USD 225 million in healthcare expenses through a collaboration with the group RIP Medical Debt.
“We were usually the final call of counties and states in the initial periods of the COVID pandemic after the usual public health system just could not meet the task,” Newman said. “Today, because of our proven record and influence, Nomi Health is frequently the first call.”