Chicago-based VillageMD announced $100 million in Series B round led by $75 million from Kinnevik AB, an international growth-focused investment company, and a returning investment from Oak HC/FT, as well as new investments from Town Hall Ventures and Adams Street Partners.
"As we continue to transform and disrupt the healthcare system, we want partners who embrace our mission of changing U.S. healthcare for the better," VillageMD CEO and Co-Founder Tim Barry said in a statement. "Partnering with these world-class investors, who share our vision and bring us fresh capital and new capabilities, allows us to impact more patients and ultimately improve the quality of care in our country."
VillageMD will use the funding from the capital raise to expand its primary care footprint in existing and new markets and enhance docOS, its market-leading primary care platform. It will also grow its Village Medical brand and scale its Village Medical at Home offering. VillageMD currently partners with more than 2,500 primary care physicians and manages $3 billion of total medical spend in value-based contracts.
Kinnevik, a growth-focused investment company listed in Sweden, has a long track record of backing founder-led, technology-enabled companies that have helped transform numerous industries, including telecom, media, retail and healthcare. Kinnevik was attracted by the entrepreneurial spirit of VillageMD's three co-founders, Clive Fields, M.D., Paul Martino and Barry, who started VillageMD in 2013, states a company news release.
Kinnevik Senior Investment Director Chris Bischoff added: "The primary-care physician is best placed to coordinate care delivery and arguably has the greatest influence on healthcare outcomes. VillageMD enables physicians to move towards a primary care-led, high-value and risk-bearing clinical model. Their technology, operational and clinical support capabilities have yielded best-in-market outcomes and proven results. We are delighted to partner with VillageMD towards delivering healthier patients, happier physicians and better outcomes.”
Bischoff will join VillageMD's board of directors.
Other investors to the Series B round include Oak HC/FT, which led VillageMD's Series A and is co-founded by Annie Lamont, member of Forbes' Midas List; Town Hall Ventures, co-founded by Andy Slavitt, former acting administrator of the Centers for Medicare & Medicaid Services; and Adams Street Partners, an investment management firm with $38 billion of assets under management. Guggenheim Securities, LLC acted as the exclusive financial adviser to VillageMD.
VillageMD intends to grow its Village Medical brand and scale its Village Medical at Home offering. The company currently partners with more than 2,500 primary care physicians and manages $3 billion of total medical spend in value-based contracts.
VillageMD has raised $216 million across three funding rounds, according to Crunchbase.