We're thrilled to share a new GoingVC Partners' investment opportunity: Koda Health, the Advanced Care Planning Digital Health B2B SaaS platform.

As an accredited member of our exclusive community, you have the ability to invest in this syndicate opportunity.

About Koda Health | Koda Health is a B2B Digital Health SaaS that guides American Medicare-aged patients through advanced care planning (ACP) via a Turbotax-like navigator. ACP is the process of determination and documentation of end-of-life medical and legal preferences, including in situations when patients cannot speak for themselves. Koda automates and minimizes the complexity of ACP, benefiting patients, payers, clinicians, and health care systems. With similar rates of engagement across race and socioeconomic status, Koda is providing a dynamic, equitable solution to the masses that also unlocks new segments.

Koda Health has closed initial contracts with some of the biggest names in healthcare, including United Healthcare, Cigna, and Privia Health. The platform's intuitive design resonates profoundly with its users, boasting an impressive 91% app completion rate once an account is established. This high level of engagement is consistent across diverse segments of race, gender, and socioeconomic status, opening doors to previously untapped market segments. The company’s client net promoter score (NPS) stands at a remarkable 87, with a patient NPS exceeding 80, signaling strong satisfaction and loyalty. With only losing one of six enterprise clients due to acquisition, Koda's secret sauce lies in its reduced operational lift and dual approach to serving both high and low-risk patients. This primes Koda to ‘land and expand’ as they are awarded greater swaths of their customers' patient populations. In fact, they have already landed an LOI with Houston Methodist, the #1 Hospital in Texas for 12 years in a row, for their second product line, Kidney Care.

The current round is led by repeat and large strategic investors that provide validation to Koda’s mission and model. Timing is ideal for investment in HealthTech as experts, like Bessemer Venture Partners, have suggested that we are in the ‘trough of disillusionment’, with low equity prices. Moreover, there have been 4 acquisitions of similar startups in the past 5 years, including these 3 exits over $100M:

• Pack Health (patient engagement app), acquired for $125M around Series A by Quest​
• ​Iris Healthcare acquired by Aledade after Series A for est $80M Cash and $40M earn outs
• ​Vital Decisions acquired by Evolent for $130M w/ 500k LUM (Koda projects 700K LUM by 2024)

Why We're investing in Koda Health

Geriatric Market: $1T and Growing | The U.S. ACP solutions market size was valued at $85.9 billion in 2021 and is anticipated to expand at a CAGR of 12.7% from 2022 to 2030. The geriatric services market is one of the largest in healthcare, expected to exceed $1T in 2022 and grow at a CAGR of 6.1%.

Historically low national ACP completion rates provide an immense opportunity to improve patient engagement and ACP completion rates. In the US, there are two main ways of getting an advanced care plan in place- through an attorney (which few can afford) or through a physician (which struggle to navigate legal/documentation requirements). As a result, clinically-guided advanced care plans represent less than 10% of annually completed plans nationally. Underrepresented minorities and low socioeconomic status populations plan at half the rate. Without advance guidance, the probability that a loved one chooses the treatment the patient would choose for themselves is only 50%. This costs US health systems nearly $200B/yr in unwanted and inappropriate care that often violates patients goals of care, quality of life, and sometimes even their religious beliefs.

Unit Economics | Koda Health’s value proposition is reinforced by strong economics. For current “Per Member Per Month” - or PMPM - and performance revenue models, Koda reports current contract margins of 60-75%. If and when Koda shifts to a shared risk pricing model, its revenues promise to increase 3-5x per patient. Koda’s growth plans feature increasing customer lifetime value and lowering customer acquisition costs by upselling difficult conversation product lines to existing ACP product line customers.

Value Proposition to Enterprise Customers and Patients | Koda Health demonstrates the ability to deliver benefits and address unmet ACP needs of each of its key user and customer segments stemming from a lack of or currently ineffective ACP solutions.

Koda’s automation features reduce operational lift for providers and physicians as it unburdens them from the time constraints and training needed to administer and guide patients through the ACP process. It empowers patients to think through and define their care goals and ensure they are receiving care that aligns to their quality of life goals and values. Patients all along the risk spectrum receive personalized education, guidance, and experiences to drive access to services such as palliative care, hospice, and goal concordant care that increase length and quality of life. The Koda platform’s superior user experience increases engagement rates among the older demographic patients, while its tech-first deployment benefits both providers and patients by demonstrating equal rates of engagement across race, gender, and socio-economic status, regardless of locations. Koda enables fee-for-service providers and hospital systems to avoid net loss admissions, decrease 30 day readmit rates and length of stays. Koda increases revenue to the health system by helping their physicians drop CPT codes. Koda enables value based care providers to realize cost savings for both end of life care and over the course of a patient's life and to meet Medicare ACP performance metrics.

World Class Founding Team

The founders - Tatiana Fofanova, Desh Mohan, and Katelin Cherry have dedicated 6 months to customer discovery and market research via the Texas Medical Center Innovation (TMCi) Biodesign program. Through an “exhaustive, full-time process of discovery”, they interviewed hundreds of physicians, administrators, and patients to find the cause of ACP issues.

Tatiana, a PhD graduate in Molecular Biology from Baylor College of Medicine, conducted clinical research in a population with incurable diseases at Texas Children's Hospital, which included the legally complex aspects around the issue of medical consent. Desh, an internal medicine physician by training from Baylor College of Medicine and MIT graduate, has delivered culturally competent care in health systems across the U.S., working at eight hospitals in many diverse communities. Katelin, a Masters in Bioengineering graduate of Rice University and Fulbright Scholar, has many years of experience in the design and delivery of healthcare education solutions, both locally and internationally, to underserved communities in need.

Their domain expertise combined with social capital afforded by graduating from the top institutions in Houston, a city home of the largest medical center in the world, gives them a significant leg up in landing some of the largest logos in US Healthcare.

Funding & Investor Details

Koda Health is raising $3M (up from $2M originally due to demand) in an oversubscribed seed extension round at a $19M capped post-money valuation SAFE, including a 20% discount.
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Existing investors for the round include: Ecliptic Capital, $125M Austin-based seed round that led the round after investing in the prior round, completing a $1M first close (in bank); Memorial Hermann, the largest not-for-profit health system in southeast Texas; and the Texas Medical Center Ventures.

If you have any questions or would like to see our diligence work, please email investments@gvc.partners

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