Memorandum

mySugr raises $4.8 million in funding from Roche Ventures, iSeed Ventures, and XLHealth – March 12, 2015

Earlier today, Austria-based mySugr announced that it has completed a $4.8 million capital infusion funded by Roche Ventures, iSeed Ventures, and XLHealth. The cash will enable the company to continue its international growth, bringing its total funding to date to ~$5.8 million. As a reminder, mySugr is a diabetes startup in the mHealth arena whose flagship product is its Logbook, a diary and monitoring app that leverages gamification to encourage consumers to “tame their diabetes monster” by logging sugar values, insulin, exercise, mood, etc. The app has already accumulated an impressive 210,000 registered users across the US and Europe (growing by an estimated 800-1,000 users/day) and aesthetically, hits all the right notes with a sleek user interface and screen design. Market research from Close Concerns’ sister company dQ&A indicates that as of 4Q14, more than half of adult mySugr users with type 1 diabetes consider it “indispensible” (that is, “they would not want to be without it”), while no more than a third of users of other popular diabetes app consider such apps indispensible (Contact richard.wood@d-qa.com for more details). Apparently, those who use the app value it quite highly. The one knock is that it does require manual inputting of data, though the company's newest innovation (the mySugr Importer) uses the smartphone’s camera and image recognition software to scan glucose meter values into the Logbook – it’s cable free and very cool. Users simply hold their meter in front of the camera while clicking through their values and the optical recognition software “reads” the numbers wirelessly. The Logbook is available on both iOS and Android platforms (CE Marked and FDA registered), while the Importer is only compatible with Apple devices (Android coming in 2015). Ultimately, we love the move to make clinicians’ and patients’ lives easier and hope the platform is getting data downloaded more regularly. Certainly, making data accessible is a great first step – using it to help drive therapeutic change is what the field still desperately needs. We find it notable, too, to see Roche’s venture funding arm investing in the company – reportedly, its “first serious step" into the digital health segment. There continues to be growing momentum behind digital health (see Apple’s initiative launched earlier this week) and we’re staying tuned.