Care access platform DexCare closed a $75 million Series C equity funding round Wednesday.
The company said it will use the capital to increase its specialty care offerings in areas where existing provider customers have expressed demand, such as orthopedics and oncology.
The round comes as digital health funding continues to see a massive drop-off in venture capital funding and deal activity, according to a report from Pitchbook published Tuesday.
DexCare Co-founder and CEO Derek Streat acknowledged the macroeconomic challenges, but said the company was eyeing growth.
“There are amazing companies out there that are trying to address certain parts of the access continuum,” Streat said. “There needs to be some consolidation across these solutions.”
In early 2021, DexCare was spun off from Catholic nonprofit health system Providence after about four years as part of the organization.
Kaiser Permanente Ventures was among the participants in the funding round. DexCare also has secured investments from Providence and Mass General Brigham.
“We’re a big believer in health systems and the role they play in US healthcare,” Streat said.
Streat said the company began exploring an investment round at the 2023 JP Morgan Healthcare Conference in January to attract more health system investors, but the company’s plan began to take shape in April.
The round was led by investment fund ICONIQ Growth and brings DexCare’s total funding to $146 million.