UpStream, a value-based primary care services and technology company, said Thursday it secured a $140 million Series B funding round.
The round brings the company’s total funding to $185 million. Investors Coatue and Dragonee led the round with participation from Avidity Partners, Define Ventures and Mubadala.
The Greensboro, North Carolina-based company, which sends pharmacists to primary care physicians’ offices and pairs each with community nurses and virtual concierge teams to address non-medical needs, has a goal to expand in 20 states in the next three years. It operates in North Carolina, Virginia and South Carolina.
“We go to where the patients already have their existing relationships but are falling short on services and care that they need to be provided,” said Dr. Sanjay Doddamani, CEO at UpStream. “We augment the care in the existing environment rather than having them leave and go find a new practice.”
Companies like Chicago-based Oak Street Health, which offers primary care for Medicare-aged patients, operate in a similar space. The UpStream model is slightly different as it focuses on driving patient traffic to its physical clinics instead of bringing resources to existing primary care offices.
Like Oak Street, UpStream has a technology stack that could eventually be sold to third parties for additional revenue. UpStream has built its intellectual property stack on Innovaccer, a San Francisco-based cloud-based healthcare data and analytics platform company. Doddamani envisions a future where its intellectual property is also a product offering.
“Using those insights to drive behaviors, of patients who need medical medication optimization, I think we could scale that IP separate from our company as we continue to grow,” Doddamani said.
The round, which began a few months ago, is expected to fund the company’s geographic expansions and intellectual property growth, while honing its value-based cost savings model.
With investors recommending companies quickly complete their funding rounds ahead of anticipated additional macro-economic uncertainty, Doddamani offered advice to other founders navigating the current market.
“The proof points were very strong for investors to come in,” Doddamani said. “What's missing is working capital to help scale this business. We welcome that support. But I come with tremendous humility. We also need, the expertise they have as growth equity companies to help scale a company.”
Managing growth without abandoning profitability aspirations remains a priority, Doddamani said. He said the company has an internal goal to turn cash generative in each new market in 24 months.
