Market Map, Case Study of Amwell, Seed-Stage Companies
In Part I of the series, I wrote about the definition of telehealth, its market size, and typical business models. In Part II, I continued with the new technologies that will continue to disrupt the sector, including AI and AR/VR, as well as VC funding, M&A and IPO activities in telehealth. Here I will cover the market landscape of telehealth software and services providers and remote patient monitoring device providers that support virtual care for patients.
Market Map
Telehealth platform vendors were defined as B2B software providers in Part II. They typically design white-label software and sell that directly to providers or insurance carriers.
Case Study — Amwell¹
Let’s take a look at the Amwell, originally a software vendor providing telehealth platforms for providers and insurance carriers (Anthem is their largest customer) now has developed their own network of doctors (like One Medical) to provide on-demand 24/7 video appointments for individual patients.
Summary
- Founded in 2006, Amwell is a telehealth company enabling digital delivery of care for healthcare’s key stakeholders
- $202M in LTM revenue, ~700 full-time employees
- Provides 55 digital care programs, supporting 36,000 employers, covering 80M individuals
- Powered 5.6+ million telehealth visits for their clients
- Founded in 2006, Amwell is a telehealth company enabling digital delivery of care for healthcare’s key stakeholders
Revenue Model
- Platform subscription fees from health systems, health plans, and few other unique enterprise customers (38%)
- Service fees for AMG’s own network providers to deliver care on their platform (51%)
- Hardware and supporting professional services (11%)
Benefits
- All-in-one telehealth platform for providers and insurers complemented with a range of telemedicine equipment to connect patients to remote providers and enable remote examinations
- Own network of providers offering 24/7 comprehensive care direct to patients, at a lower cost covered by insurance plans
Risks
- Changes in healthcare laws, regulations or trends and ability to operate in heavily-regulated healthcare industries
- Limited number of significant customers (including the largest customer Anthem — ~22% of total revenue) and risks that they may lose the business
- Recent surge in demand due to COVID-19 may not be sustainable as patients and providers are slow to adopt the services
Strategic Initiatives
- Partnership with Google Cloud Platform as their global cloud platform partner for telehealth visits
- Partnership with Tytocare, a developer of smart devices that can enable medical exams of patients remotely
- Acquisitions of Avizia (telehealth and remote conferencing platform) in 2018 Aligned Telehealth (telepsychiatry platform) in 2019
Seed Stage Companies to Watch²
- HQ: Los Angeles, CA
- Founder: Areva Martin
- Year Founded: 2019
- Amount Raised: <$1M from StartUp Health, Nex Cubed
- Description: Butterflly provides a cloud-based telehealth platform designed to connect underserved population who face behavioral health and autism with their therapists and experts
- HQ: New York, NY
- Founder: Anurag Gupta, MD
- Year Founded: 2018
- Amount Raised: $4.1M from Bloomberg Beta, Basecamp, Kairos, etc.
- Description: Tembo partners with senior care communities and clinicians to provide residents with care through telemedicine, offering services like 24/7 urgent care, psychiatry + cardiology appointments
- HQ: New York, NY
- Founder: Shanel Fields
- Year Founded: 2018
- Amount Raised: $1.0M from Red & Blue Ventures, Alumni Ventures Group, Techstars, etc.
- Description: MD Ally’s platform offers non-emergency 911 telemedicine software that allows EMS to triage these patients to virtual care instead of dispatching costly, emergency services
- HQ: Dallas, TX
- Founder: Charles Kunene
- Year Founded: 2018
- Amount Raised: $1.6M from Matchstick Ventures, Route 66 Ventures, Techstars, United Healthcare, etc.
- Description: River provides a virtual care platform offering 24/7 access to doctors, nutrition services, urgent care visits, birth control and women’s health services
[1]: Source: Amwell annual report
[2]: Source: PitchBook, company websites, LinkedIn
