A trio of venture capital firms have invested $18.7m into health-focused social network provider WellTok through a Series B financing round.
Emergence Capital Partners, InterWest Partners and New Enterprise Associates became new investors in the business, which has previously been backed by Miramar Venture Partners and Okapi Venture Capital.
WellTok executive chairman Jeff Margolis has been appointed CEO in conjunction with the financing.
Margolis previously led healthcare IT company Trizetto from startup to a $35m IPO in 1999 and $1.4bn buyout by Apax Partners in 2008.
Two of the largest health plans in the US currently use WellTok’s CaféWell social health network to help their customers engage in with experts, find information and take part in challenges to attain health goals.
InterWest Partners’ Nina Kjellson said, ““Jeff is one of the very few proven entrepreneurs who really understands the big picture in healthcare and why previous efforts to engage consumers in health management programs have failed.
“He has built a half-billion dollar healthcare IT business before, and with the talented team at WellTok, we are excited to help him do it again.”
Last November Mindbody, a provider of online business management software to the beauty, health and wellness industry, completed a $35 m investment round led by Institutional Venture Partners (IVP).
The company’s existing investors, Catalyst Investors and Bessemer Venture Partners also participated.
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