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and mobile devices via a Bluetooth connection, though Livongo is working to develop a new version that can talk to other devices using a cellular signal.
Livongo’s customer list features a number of large, self-insured employers, such as Lowe’s (NYSE: LOW) and Target (NYSE: TGT). According to company materials, other Livongo clients include health insurers and pharmacy benefit managers, which manage prescription drug benefits for commercial and government-provided heath plans.
Tullman said Livongo uses a traditional software-as-a-service (SaaS) business model, under which it charges customers monthly fees to use its digital tools. However, he said that unlike some companies with SaaS structures, Livongo only charges customers for those members or employees who actually use its products in a given month.
Cambia also participated in the round through Echo Health Ventures, a company co-owned by Cambia that invests in digital health startups. Other participants in the investment included DFJ, Kleiner Perkins Caufield & Byers, Merck Global Health Innovation Fund, Microsoft Ventures, Sapphire Ventures, Zaffre Investments, and 7wire Ventures, a Chicago-based healthcare venture fund Tullman co-founded in 2013.