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Thirty Madison Vaults to Unicorn Status, Raises $140 Million

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(Bloomberg) -- Thirty Madison, a health-care startup that specializes in treating chronic conditions, has raised $140 million in funding, valuing the company at more than $1 billion and granting it so-called unicorn status.

HealthQuest Capital led the funding round, which included participation by Mousse Partners and Bracket Capital, as well existing backers Polaris Partners, Johnson & Johnson Innovation - JJDC Inc., Greycroft and Northzone.

“The new funding will allow us to drive better patient experiences and superior health outcomes at a scale that hasn’t previously been possible,” Chief Executive Officer Steven Gutentag said in an interview.

In 2020, Thirty Madison’s revenue tripled, and in the first quarter of 2021, sales surpassed an annual run-rate of $100 million, Gutentag said. Thirty Madison’s personalized treatment and chronic condition-management tools, including medication and ongoing communication with a physician, are used by by more than 250,000 active customers.

Founded in 2017 by Gutentag and Demetri Karagas, Thirty Madison operates four verticals: Keeps, Cove, Evens and Picnic, which specialize in men’s hair loss, migraines, gastrointestinal conditions and allergies, respectively.

“In the next couple of years we want to have at least one brand that’s relevant to every single person in the country,” Gutentag said, citing heart disease, diabetes, dermatological conditions, sleep, mental health and metabolism as other potential avenues.

Thirty Madison’s telemedicine service reaches more than 40 U.S. states, and pharmacy offerings are available nationwide, he said. The company has long-term ambitions to launch internationally.

“With Covid, the move toward telemedicine has been very dramatic,” said HealthQuest Capital partner Randy Scott, who is joining Thirty Madison’s board. “Acceptance by the consumer and patient population of alternative-care models has resulted in ten years’ worth of change in 18 months.”

The company competes against telemedicine providers such as Teladoc Health Inc., Livongo and Omada Health, as well as online pharmacies Ro and Hims & Hers Health Inc. Hims & Hers became a public company through a SPAC merger.

“I don’t have a particular view on whether a SPAC is right for us,” Gutentag said. “But the more ways there are for good companies to enter the public markets or get financing -- it’s certainly not a bad thing.”

Thirty Madison has about 180 employees, more than triple its workforce at the start of the pandemic. Its hires include President Michelle Carnahan, a former Sanofi SA and Eli Lilly & Co. executive; and Jason Rubin, a Walgreens veteran.

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