Business Model Analysis
Evidation aims to fill in the gaps of traditional clinical trial outcomes with novel health datasets via its digital research platform. In this post, we analyze Evidation’s funding, business model, customer acquisition strategy, market size, and competitors.
Historically, clinical trials have served as a necessary procedure to ensure the safety and efficacy of medical devices or drugs.
While clinical trials have relied on traditional measurements collected from health exams, blood tests, and other biological assessments to validate a product, researchers have started to integrate real world data (RWD) — like electronic health records (EHR), claims, and information from wearable sensors — to conduct trials.
The promise of RWD is its ability to generate real world evidence (RWE), which is used to help form a more comprehensive understanding of how a medical intervention impacts human health, potentially leading to better outcomes outside the lab.
Evidation Health, a startup based in San Mateo, CA, ingests massive amounts of RWD into its proprietary research platform. Healthcare clients, such as Ochsner Health System and Sanofi, can then use that data to assess the disease burden of a population, employ digital measurements to treat diseases faster, or validate benefits of medical products.
We analyze Evidation’s:
- Funding history
- Business model & traction
- Customer acquisition strategy
- Market size
B Capital Group has led Evidation’s 2 last funding rounds
Evidation has raised $106M in total disclosed funding since 2012.
Evidation formally launched in 2015 through a joint venture of GE Ventures and Stanford Health Care. Shortly after, the startup merged with a health and fitness data aggregation company called The Activity Exchange, which was founded in 2012. In January 2015, the newly combined entity raised a $6.2M Series A from investors including Rock Health and Asset Management Ventures.
Its most recent round was a $45M Series D led by B Capital Group, with participation from SV Health Investors, McKesson Ventures, Section 32, and others. The deal comes 2 years after its $30M Series C (also co-led by B Capital Group, along with SV Health Investors).
Business model & traction
Evidation’s evolution: from real world evidence to real life outcomes
Evidation uses RWE to perform validation assessments of digital and traditional medical products.
These studies enable platform users — including health systems, life sciences, and digital health companies — to understand the real life outcomes of their products, which is important when evaluating the quality of care and associated cost of various devices and therapeutics.
Real Life Study, Evidation’s software-as-a-service (SaaS) research product, is an end-to-end virtual clinical trial platform that allows users to perform study design, patient recruitment, and protocol management.
Clients pay a base fee for platform access and then pay additional fees for specific projects and use cases.
The company has produced more than 60 research publications in partnership with clients that investigate topics ranging from accuracy of digital health tools to identifying digital biomarkers across therapeutic areas, such as Alzheimer’s disease, chronic pain, influenza, and heart failure.