Cigna Ventures, healthcare services provider Cigna’s $250m corporate venturing unit, revealed on Monday it has backed funding rounds for two US-based companies totalling $49.5m in size.
Arcadia.io has built a software platform designed to help healthcare providers use their resources more effectively while serving a large number of patients, combining data aggregation and analytics tools with workflow software.
The company, formerly known as Arcadia Healthcare Solutions, raised $29.5m in Q4 2019, it revealed, through a funding round led by Cigna Ventures and backed by unnamed existing shareholders.
Zaffre Investments, the venture capital arm of health insurance provider Blue Cross Blue Shield of Massachusetts, had joined private equity firm Peloton Equity and undisclosed existing backers to supply $13m for Arcadia in July 2017.
Arcadia had secured $30m six months earlier, from Zaffre Investments, Peloton Equity and Merck Global Health Innovation Fund and GE Ventures – subsidiaries of pharmaceutical firm Merck & Co and industrial technology producer General Electric respectively – in addition to Morgan Stanley Alternative Investment Partners.
The January round followed $13m in 2015 from Zaffre Investments, Peloton Equity and private equity firm Ferrer Freeman & Company, which had partnered Arcadia’s management team to acquire the company in 2012.
The other recipient is Buoy Health, the developer of a clinical support platform that utilises artificial intelligence to give early support to users as soon as they fall ill. The Cigna Ventures investment boosted the series B round Buoy announced in August 2019 from $15m to $20m.
Venture capital firm Hambrecht Ducera Growth Ventures led the first close, which included health services provider Optum’s investment arm, Optum Ventures, as well as health insurance provider Humana and F-Prime Capital, part of investment and financial group Fidelity.
The latest investment came after a $6.7m series A round for Buoy in 2017 featuring F-Prime, health and life sciences fund FundRx and assorted angel investors. It had previously secured $2.5m in a 2015 seed round, according to a regulatory filing.
