ack in 2018, Romanian programmer Octavian Costache founded Stellar Health in New York, with three other associates: Ari Brenner, Ben Kraus, and Michael Meng. They created a VBC (Value Based Care) cloud system to help GPs and other healthcare providers stay in touch with their patients from afar.
And it went well for them so far.
By December 2018, they had already amassed clients all across the East Coast.
On the 1st of April, 2019 they raised an undisclosed amount to kickstart their efforts, and they then went on to have a successful financing round on the 15th of May 2019, raising almost $5 million.
They then went on to acquire clients in 11 states.
Bringing us to today, when Stellar Health went through a financing round spearheaded by Point72 Ventures and Primary Venture Partners, two venture capital funds focused on early-seed investments.
The total raised amount was $10 million, bringing the company’s total valuation to $14,920,332.
But why is VBC healthcare so important?
Stellar Health improved the healthcare system with their VBC system by bringing healthcare professionals closer to the ones in need, a dire necessity in these troubled times.
But there’s a catch.
The VBC system is based on maintaining health, rather than solving problems when they appear. This means that the cost of healthcare is reduced for individuals, which makes it an inspired choice in the US's mess of a healthcare system.
And at the forefront of this innovative startup?
The CTO, Octavian Costache, one of our own.
He’s also a co-founder, but he didn’t grow up in Silicon Valley. Octavian was actually born in Romania, and he graduated from the Polytechnical University of Bucharest in 2005.
But he was a wonder kid from the beginning. In highschool, he participated in a lot of informatics competitions. Back in 2002, while he was still a student, he founded doizece.ro, a chess and cards game platform.
After relocating to the US in 2005, Octavian worked for Google for 6 years. In 2013 he founded Spring Inc, an ecommerce startup that boomed, raised over $100 million and made a hefty profit after an exit which involved ecommerce giant Alibaba.
That’s Octavian’s story so far.
But it’s far from over. Stellar Health is still in its infancy, and we can expect great achievements to come from that as well.
And since we mentioned it…
What even is Health Tech?
Health Tech (short for health technology) is any technology that helps its users achieve better health, or better access to healthcare service providers. Considering the current crisis we’re dealing with, it’s no wonder that startups focusing on health tech are garnering a lot of attention.
But it goes deeper.
Usually, health tech can be broken up in a few categories:
- Telehealthcare, that helps patients get healthier remotely (like Stellar Health)
- mHealth, like apps and mobile wearables
- Digitised Health Systems, which help with storage of patient data.
- Health Analytics, capable of analyzing health big data
Now if you Google health technology…
WHO (World Health Organization) will come up with this definition: “The application of organized knowledge and skills in the form of devices, medicines, vaccines, procedures and systems developed to solve a health problem and improve quality of lives.”
That’s well and true when we talk about what doctors traditionally use.
But in a startup context, health tech refers to the four categories outlined.
What do you think about Stellar Health?
Is it a force for good in our current crisis?
Do you usually keep a close eye on developments in the health tech ecosystem?
Let us know in the comments below!