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'Hospital at home' startup Doccla raises $46M to expand into Europe

TechBrunchBy TechBrunchSeptember 3, 20243 Mins Read
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Hospitals around the world regularly face bed shortages. A health crisis or other major disaster can exacerbate the problem to the breaking point. Startup Doccla is deploying technology to address the issue. The company is developing “virtual bed” technology to allow doctors to remotely manage patients who are discharged early, or in some cases, never go to hospital. The company has gained popularity in the UK and Ireland and is now raising £35 million ($46 million) to expand in Europe.

Lakestar led the Series B round, with participation from Elaia and several existing investors. The funding comes two years after Doccla raised $17 million in Series A funding.

Doccla, which competes with companies like Graphnet and Huma, plans to use part of the funding to hire local teams in new markets. The startup has so far focused on deals with health services like local NHS trusts in the UK and the Health Service in Ireland for its “virtual bed” technology for patients, but it's also supporting virtual clinical trials for pharmaceutical companies, with a view to building a data analytics business on top of all that.

Doccla's initial start was born out of the headwinds of COVID-19. To alleviate resource strains, there was a big push to keep more people out of hospitals, and healthcare organizations turned to virtual bed solutions like Doccla to fill the gap. But as life began to return to normal, the startup also pursued a more pragmatic growth strategy. “Revenue first is in our DNA,” Doccla co-founder Martin Latz said in an interview.

The core of Doccla's service is a series of monitoring devices that are provided to patients along with their mobile phones with the app pre-installed. These devices are used to collect data that is loaded directly into the electronic health record. Doctors review the data on a clinician dashboard and receive special alerts if a diagnosis requires further attention. It's a strong selling point for busy staff and peace of mind for patients at home.

Lutz told TechCrunch that the company takes a very hands-on approach to entering new markets, typically acquiring new customers in that market before entering.

“You sell first, then you enter the market with the help of the customer. That's exactly what happened in Germany,” he said in an interview, adding that he had similar plans for Austria and France. “We're aiming to replicate what we're doing in Britain.” [while] Recognizing the foundations of [newer] “The market is very different, especially in terms of reimbursement,” he said.

In the pharmaceutical industry, Doccla's “hospital at home” technology is used in drug research. Specifically, during drug trials, Doccla reduces or replaces the need for patients to physically visit clinics typically run by third-party contract research organizations to monitor their progress. “We can help you do things faster, better and cheaper than a traditional CRO,” Ratz said.

The market for virtual hospital solutions is becoming crowded, but Doccla believes details such as device agnosticism will help it continue down this path.

Some of these are on the product side. For example, unlike competitor Whzan, better known for its Blue Box, Doccla is device agnostic. And while Doccla does require an app, it makes sure to use large fonts and a simple interface. Plus, “if data isn't enough, the Doccla app connects patients and clinicians with in-app messaging and video calling.” Those clinicians can also be Doccla themselves, especially after hours and on weekends, another differentiator from other services.



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