Investment in mobile health is booming, and so are the exit opportunities in this “mhealth” sector.
Earlier this week, the Seattle-based startup Mindbloom, which develops healthy-living mobile applications, was bought by Denver’s fast-growing health-tech company Welltok.
The financial terms of the deal have not yet been disclosed.
Welltok helps population managers optimize patient health by pairing good behavior (exercising, eating well, and so on) with financial rewards. In April, the company raised just shy of $19 million from Silicon Valley venture firms to expand into new markets and invest in corporate development.
Welltok’s flagship product is CaféWell, a service for consumers to submit their health and wellness goals, and track their progress over time.
Mindbloom’s offices will serve as a base of operations for Welltok in Seattle. Welltok will not shut down the company’s most popular mobile apps, which include energy tracker Juice, and Proof, an app that encourages people to set seven-day goals.
This is also a talent acquisition of sorts, as Mindbloom has hired a number of skilled mobile application developers. It’s founders are Brent Poole, who was one of the earliest employees at Amazon; Travis McElfresh, a former chief technology officer of InfoSpace; Paul Ingram; and Chris Hewett. The company got its start in 2008 after raising a seed round from friends and family.
San Francisco-based mergers and acquisitions firm J Moore Partners acted as the financial advisers on the deal.
Welltook has raised $48 million in venture funding to date from Interwest, Emergence Capital Partners, and others.