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Digital Health


SUMMER HEALTH POCKETS $12M SERIES A TO GROW TEXT-BASED PEDIATRIC SERVICE

By Heather LandiApr 24, 2024 8:00am
Summer HealthpediatricMobile Appsseries A

Summer Health started with pediatrics by offering message-based services for
urgent care and developmental care. Parents can text to get answers to questions
about their children's rashes, congestion, and colds. (Summer Health)

Summer Health, a pediatric telehealth messaging service launched just 18 months
ago, picked up $11.65 million in series A funding to build out its technology
platform.

The startup developed a telehealth messaging platform that aims to answer
patients’ medical questions via text in 15 minutes or less. The service is a
text-based companion to a family's primary pediatrician.







For many parents, a child's bump or scrape turns into a visit to urgent care
after hours because a pediatrician can't be reached. These trips often mean
waiting for hours to be seen by a doctor and getting hit with hefty
out-of-pocket costs.





Summer Health founder and CEO Ellen DaSilva has been in that position herself as
a parent of three children and was frustrated with limited options for timely
medical advice or care.

DaSilva, who had experience in the digital health market as an early executive
at Hims & Hers, decided to tackle the problem by focusing on the smartphones
that most patients already carry in their pockets. She teamed up with co-founder
Matthew Woo to launch Summer Health in July 2022.

The text-based service, rather than a video-based telehealth platform, makes it
accessible to more parents, DaSilva said.







"I feel so passionately that tech is a great equalizer. Everybody has access to
be able to send a text message. You don't need to understand complex technology
to be able to use Summer Health," she said in an interview. "The other thing I
love about is the pseudo-synchronous nature. The fact that you can be doing
something, whether it's your job, or sitting at your kid's soccer game or taking
care of something for yourself, you can be doing that and getting care for your
kid in a very intimate three-dimensional way that is also very visually rich, as
we accept photos and videos."

The series A round was led by Lux Capital, doubling down on its seed investment,
and new investor 7WireVentures. Existing investors Sequoia Capital, Box
Group and Metrodora Ventures also participated in the round as well as another
new addition, Pivotal Ventures, a Melinda French Gates fund. 

In August 2022, the company raised a $7.5 million seed round. Summer Health did
not disclose its valuation.

"What's so special about this group of investors is that they're all parents,
and every single one of them actively uses the product," DaSilva said.

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Pediatric telehealth startup Summer Health expands text-based service into
primary care for kids

A long-time Summer Health user as a mom of three children, Alyssa Jaffee,
partner at 7wireVentures, said the company's service resonates with parents
looking for real-time medical guidance and access to care.

"At 7Wires, we invest in companies that empower people to become better stewards
of their own health. We think about healthcare technologies and services to meet
people where they are. We have done a bunch of work in pediatrics and we
were looking for the whitespace that a company like Summer Health could solve,"
said Jaffee in an interview. Jaffee also joined Summer Health's board, along
with Alfred Lin of Sequoia Capital, Deena Shakir of Lux Capital and Chelsea
Clinton of Metrodora Ventures.

Summer Health has serviced more than 30,000 visits to date.

"Many digital health companies do not have this kind of traction and this kind
of uptick in this short period of time. That was, for us, a big message and an
indication that the problem was extremely acute and extremely real," Jaffee
said.

The market dynamics for digital health investing have changed since the funding
boom during the COVID-19 pandemic, but Jaffee noted there are investment
opportunities for companies that tap into a real and growing need.

"There is capital out there. There are funds that have dry powder and are
looking to invest in amazing companies," she said. "The tailwinds for great
companies are still there, and great companies do get funded."

She added that 50% of 7wireVentures' limited partners are strategic
organizations—so employers, health plans and health systems. "There is a real
appetite among employers and health plans, in particular, to partner with a
solution like Summer Health."

In November, the company expanded its longitudinal primary care model with
lactation support, sleep training, developmental milestone tracking and
long-term pediatric care.

Summer Health will use the series A funding to build out its technology
platform, DaSilva said.

"We have a lot more that we need to build. We are meaningfully expanding the
scope of our platform," she said, adding, "We're also starting to look at things
like visual diagnostics and testing for kids so that we can move more into the
home, not only for urgent care, but also for that longitudinal primary care."

"We're also using the funding to hire great people, both on the tech and
go-to-market side as well as physicians to broaden the scope of our platform,
and then for growth as well," she said.

Summer Health is available directly to consumers, and companies offer it as a
benefit to their employees. The company also is exploring other distribution
channels.

"We want all 75 million children in this country to have access to Summer
Health, and we feel that the best way to engage the healthcare system is a
multipronged approach, so we are working with new mediums of dissemination of
our products," DaSilva said.

In a blog post, DaSilva outlined broad goals to get its products into the hands
of all families, including the 33% of children who live in pediatric care
deserts and those covered by Medicaid.

On the tech side, Summer Health has moved forward to leverage generative AI to
help power back-end administrative work for its providers. The company partners
with OpenAI to develop a medical visit notes feature, which uses GPT-4 to
automatically generate visit notes from a doctor’s detailed written
observations. Notes are then quickly reviewed by the pediatrician before being
shared with parents.

As Summer Health explored potential partners, OpenAI stood out, because its
platform offered leading large language models along with the ability to provide
business associate agreements to fulfill HIPAA compliance, according to the
company in a case study.

"We've built a platform that pediatricians love, and part of that is because
we've built great technology for pediatrician, a lot of which is automated
through OpenAI," DaSilva said.

Summer HealthpediatricMobile Appsseries AstartupsTelehealthFinanceHealth
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