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Sleep Data Receives $6M Investment from HCAP Partners to Accelerate Expansion of BetterNight
SAN DIEGO, Oct. 3, 2019 /PRNewswire/ -- Sleep Data and BetterNight, the leading providers of PAP (positive airway pressure) services in San Diego, CA, today announced a $6 million round of growth funding led by HCAP Partners, a San Diego-based provider of growth capital to middle market companies. BetterNight will use the funding to fuel the continued market expansion of its virtual care platform which includes telehealth and remote patient monitoring for those with sleep apnea as well as a digital therapeutic solution based on cognitive behavioral therapy for those who suffer from insomnia.
The Centers for Disease Control calculated that the annual economic burden of undiagnosed sleep apnea among US adults is approximately $162 billion per year. Approximately 54 million adults in the US, or 18% of the population, suffer from sleep apnea and 20% suffer from insomnia, most of whom remain undiagnosed. Of those who receive help, few receive a positive, lasting outcome.
Sleep Data launched BetterNight in 2018 as the nation's first virtual care platform to address comprehensive sleep management. The BetterNight platform delivers lower cost of care, improved outcomes, and a superior experience for the consumer. Care is accessed via telemedicine and remote patient monitoring and maintains a 99% patient satisfaction rate. BetterNight partners with providers, accountable care organizations, clinics, employers, health plans, and consumer aggregators.. Sleep Data currently serves more than 22,000 patients annually and is an industry thought leader with sixteen peer papers published to date. BetterNight is utilizing Sleep Data's clinical expertise and operational quality as it continues to expand nationwide with its highly scalable virtual care platform.
"With the aging of our population and new awareness around the negative health and performance consequences of inadequate sleep, a tsunami of new consumers will be entering an inefficient and costly sleep system that does not produce good outcomes," said Sleep Data CEO Dave French. "We have seen rapid consumer acceptance and adoption of telehealth, in-home testing, and remote patient monitoring. Today's announcement – and the incredible support of our partners at HCAP – will accelerate the commercialization of our virtual platform which helps participants quickly receive the care they deserve. Our solutions increase access to much-needed care and are delivered at lower unit costs while achieving superior outcomes. We are excited to continue to rapidly deploy nationwide based upon our recent regional successes in states including Arkansas, Illinois, Nebraska, and California."
"Sleep disorders are highly prevalent, underdiagnosed, and have a high negative impact on overall health and healthcare costs," added Dominic Munafo, Sleep Data's Chief Medical Officer. "Individuals with untreated sleep apnea had inpatient costs 82% higher than treated patients. Apnea is causal for hypertension and associated with conditions like coronary artery disease, stroke, obesity, and type 2 diabetes".
HCAP Partners' investment was led by Tim Bubnack and Hope Mago. "BetterNight has become a category-defining company in sleep care," said Tim Bubnack, Managing Partner HCAP Partners. "The BetterNight team's vision, rigorous clinical focus, and intelligent application of scalable technology across multiple platforms has raised the bar for what healthcare buyers, providers, and individuals should expect from modern sleep health solutions."
BetterNight is the nation's only comprehensive virtual-care sleep solution combining a clinically validated sleep assessment with a CBTi solution and a telehealth-based sleep apnea platform. Results include lower unit costs, superior adherence, improved patient satisfaction, and higher health outcomes. BetterNight's parent company, Sleep Data, is a recognized leading provider of sleep services in the San Diego metropolitan region for 24 years. BetterNight's mission is to have a positive impact on the lives of people living with sleep disorders by simplifying the complex process from diagnosis to treatment. Please visit www.betternight.com.
About HCAP Partners
HCAP Partners was founded in 2000 and is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $2 million to $15 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 40 companies since it was founded and through ongoing, active engagement with portfolio companies, provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund six years running and, through its Gainful Jobs Approach™, works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. Partners Tim Bubnack and Frank Mora and Principals Nicolas Lopez and Hope Mago lead HCAP Partners' investment team. For more information, please visit www.hcapllc.com.
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