Point72 leads funding round for health tech company

Point72 Ventures, an independent arm of Steve Cohen’s hedge fund firm Point72 Asset Management, led a $10 million Series A funding round for Stellar Health, a New York City-based healthcare technology company. Other existing investors that participated in the funding round include Primary Venture Partners, a seeding firm that backs NYC companies. Stellar Health’s focus is to improve the delivery of value-based care (VBC). Value based delivery rewards providers for the quality of care they give their patients rather than the volume of services ordered, according to the company that was founded in 2018 by healthcare leaders and an experienced Google engineer. Stellar Health has developed a robust payor and provider network across 11 states in the U.S. With the additional capital and resources provided by this new round of funding, the company said it will expand and accelerate product development and engineering, and support operations including the expansion of services to new markets. The company also plans to double the size of its team within the next year and is looking to hire across multiple departments, including engineering, product, operations and business development "Stellar Health has the potential to transform healthcare by increasing the number of providers who successfully adopt value-based care models," said Sri Chandrasekar, partner at Point72 Ventures. "They have developed a sophisticated and intuitive platform to drive VBC in the U.S. and we are excited to help them build on that momentum." Point72 Ventures is an early stage venture capital strategy funded exclusively by Cohen and eligible employees of Point72 Asset Management. The was founded in 2016 and invests primarily in financial technology, artificial intelligence/machine learning and enterprise technologies. “There are so many exciting implementations going on at Stellar Health and we are thrilled to partner with Point72 Ventures and other investors to take this company to the next level, said Michael Meng, Stellar Health’s co-founder and CEO. Brad Svrluga, co-founder and general partner at Primary Venture Partners, added, "Stellar Health's success has been achieved as a result of their focus on value-based care outcomes, high standards of data security compliance and most importantly, their strong commitment to their clients. We are excited to partner with Point72 to leverage our mutual strengths to support Stellar Health's growth in existing and targeted payor and provider markets."

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