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OMADA HEALTH

Netfigo Verdict
on Omada Health

Omada Health is the digital health company that helps people avoid getting chronic diseases in the first place. While Virta reverses diabetes, Omada prevents it — along with hypertension, musculoskeletal problems, and behavioral health issues. The company works with employers and health plans to deliver virtual care programs that have been shown to reduce the onset of Type 2 diabetes by 58%. Prevention is cheaper than treatment. Omada is proving it at scale.

Founded

2011

HQ

San Francisco, USA

Total Raised

$255 million

Founder

Sean Duffy, Adrian James

Status

Private

THE ORIGIN STORY

Sean Duffy was inspired by the Diabetes Prevention Program (DPP) — a landmark NIH study showing that lifestyle interventions reduced diabetes risk by 58%. The problem was that the DPP was a clinical research program, not a scalable product.

Duffy and Adrian James founded Omada in 2011 to digitize the DPP and make it available to millions of at-risk Americans through their employers and health plans. Omada was the first digital health company to receive full CDC recognition as a Diabetes Prevention Program provider.

WHAT THEY ACTUALLY DO

B2B2C subscription model. Employers and health plans pay Omada to provide prevention and chronic disease management programs to their members.

Revenue comes from per-member-per-month fees and outcomes-based contracts where Omada earns more when patients achieve health improvements.

THE PRODUCTS

Omada Prevention (diabetes prevention program). Omada for Hypertension.

Omada for Musculoskeletal. Omada for Behavioral Health.

Connected devices (smart scales, blood pressure monitors). Health coaching and peer support.

HOW THEY GREW

Employer and health plan partnerships. Omada grew by proving clinical and cost outcomes to HR and benefits leaders.

The DPP recognition from the CDC was a powerful sales tool. The company expanded from diabetes prevention into hypertension, musculoskeletal, and behavioral health to serve more of the employer market.

THE HARD PART

Proving ROI to cost-conscious employers. Digital health fatigue is real — employers are overwhelmed with vendors claiming to save money.

Omada must continually demonstrate measurable health outcomes and cost savings. Competition from Livongo (Teladoc), Virta Health, Noom, and dozens of other digital health companies.

MONEY TRAIL

Series A

2013 · Led by US Venture Partners

$5M raised

Series B

2014 · Led by Andreessen Horowitz

$23M raised

Series C

2017 · Led by Cigna Ventures

$50M raised

Series D

2019 · Led by Various

$73M raised

Series E

2021 · Led by Various

$57M raised

WHO BACKED THEM

Backed by Andreessen Horowitz, Cigna Ventures, US Venture Partners, and various healthcare investors. a16z led the Series E.

Cigna's investment signals payer validation.

Head-to-Head

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