Author Health said on Wednesday it had raised $115 million in funding led by private equity firm General Atlantic, adding to the recent influx of capital in the healthcare sector.
The deal comes more than a month after Johnson & Johnson’s consumer-health spinoff Kenvue went public in the biggest U.S. initial public offering since 2021.
Last month, SoftBank-backed ElevateBio also raised $401 million in a funding round.
After a subdued 2022, the private funding market is looking to make a comeback. The Federal Reserve easing off the pedal on rate hikes has helped restore some risk appetite for venture capital investors.
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Healthcare startup Author Health will use the funds to potentially enter new markets and secure partnerships with insurance and healthcare companies.
The company provides care and treatment for those recipients of Medicare Advantage who suffer from serious mental illness and substance use disorders.
Health insurer Humana collaborated with Author Health for its initial launch in South Florida. The startup expects to expand into other locations early next year.
Flare Capital Partners, a healthcare-focused venture capital investor, also participated in Author Health’s round. The company named veteran psychiatrist Pei Nie its chief medical officer. (Reporting by Pritam Biswas in Bengaluru; Editing by Pooja Desai)
Source: Yahoo Finance
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