WellTok Closes $18.7M Series B Funding: Appoints Jeff Margolis as CEO
WellTok Closes $18.7M Series B Funding: Appoints Jeff Margolis as CEO Apr 2013
Emergence Capital Partners and InterWest Partners co-lead round
Denver – April 10, 2013 – WellTok®, Inc., developer of CaféWell®, the leading Social
Health Management® platform that drives increased consumer engagement in health
activities sponsored by their health plans, today announced that it has closed a Series B
funding with investments from Emergence Capital Partners, InterWest Partners and New
Enterprise Associates (NEA). The company plans to use the funding to accelerate
product development and strategic partnership efforts, expand into new markets, and
build account teams to support the rapidly growing base of clients.
In conjunction with the financing, Jeff Margolis, who served as the company’s executive
chairman for the past eighteen months, was appointed chief executive officer. Margolis
is one of the healthcare information technology industry’s most successful leaders,
having founded and led TriZetto® as CEO from start-up, through IPO, to a $1.4 billion
LBO. In addition to pioneering the first commercially successful SaaS enterprise in
healthcare, he brings strategic healthcare industry knowledge and the expertise to
quickly monetize and scale the business.
“I am particularly pleased to be working with this incredibly strong consortium of
visionary investors who have highly relevant portfolio expertise that can be leveraged to
grow WellTok and the CaféWell platform,” said Jeff Margolis. “We are addressing the
significant challenges consumers face as they try to optimize their own health in
partnership with their plans and providers, and have built new support structures that
combine the best in purpose-driven social, community, personalization and gaming
Since its commercial launch in late 2011, WellTok’s CaféWell social health network has
become the leading platform for health plans and other population managers, with two of
the nation’s five largest health plan organizations among its customers. The company is
currently contracted to serve nearly 10 million consumers on its flagship CaféWell
platform, and is looking to sign its tenth customer in the coming months. Privacy,
anonymity and security are fundamental to CaféWell and WellTok is HITRUST CSF
Through its personalized tools, compelling content, gaming/incentive platform and
vibrant community, CaféWell’s ability to provide a fun and rewarding health experience
for consumers has resulted in engagement rates above 400% of industry average.
Health plan members in these programs average 50 minutes per month on the site with
a third participating in over 30 CaféWell engagement activities. Return on investment is
rapid, as consumer brand affinity toward the population manager increases along with
healthy activities. For example, members of two pedometer-based CaféWell programs
have walked 5 billion steps in the last 18 months.
One of the innovative health plans to roll out the CaféWell platform is Coventry
HealthAmerica, where David Fields is the chief executive officer. Fields commented,
"Based on the health improvements and member engagement in our Race to the
Moon™ wellness challenge, we are looking to expand the use of CaféWell for chronic
conditions, care management and quality improvement, furthering Coventry
HealthAmerica's leadership in serving its employers and members."
WellTok’s Social Health Management® platform-as-a-service strategy combines
healthcare system knowledge and many significant advancements in consumerempowering
technologies to give healthcare population managers, such as health plans
and accountable care organizations, a comprehensive solution that makes health more
fun and more rewarding for everyone – while allowing consumers to control anonymity.
“Welltok’s CaféWell platform has quickly become the platform of choice for health care
population managers who recognize the importance of engaging with consumers,” said
Kevin Spain, general partner at Emergence Capital. “We have a great deal of confidence
in Jeff Margolis and believe the company is well-positioned to build on its leadership
“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,” said Nina Kjellson from InterWest Partners. “He has built a halfbillion
dollar healthcare I.T. business before, and with the talented team at WellTok, we
are excited to help him do it again.”
About CaféWell® and WellTok®, Inc.
CaféWell is a social health network that makes getting better connected to your health
and fitness more fun and more rewarding. CaféWell provides one stop for consumers'
health, wellness and fitness across an array of proprietary and third-party engagement
activities, including fun health challenges with other users; compelling economic and
social rewards; social networking; advice from experts, peers and veteran professional
athletes; and reliable health and fitness information.
Healthcare population managers such as health plans and employer groups, sponsor
their members into CaféWell. In return, those population managers gain the use of a
neutral, trusted consumer communications channel; build consumers' affinity with their
brand; positively engage consumers with their health; and increase members' healthy
behaviors. CaféWell can be used to power base participatory wellness programs,
device-integrated wellness programs and chronic condition programs that drive high
value at a significantly lower cost than traditional disease management and wellness
Institutional and strategic investors with continuing investment in the company include
Miramar Venture Partners, Okapi Venture Capital and TriZetto Corporation. WellTok,
Inc. is headquartered in Denver, Colo. To learn more about CaféWell's ability to engage
members and consumers, visit www.cafewell.com and www.welltok.com. To learn more
about social health management, visit Jeff Margolis explains Social Health Management.
For WellTok For InterWest
Brad Samson Eliot Dobris
720-222-9490 x427 415-902-1241