Helping people help themselves
First Investment: December 2014
Melon Health digital self-management platform for chronic disease provides patients with the tools, support and information to help manage their condition and change behaviours. The product is a patient-centric software as a service and app business, providing patients (the end users), medical professionals and supporters with web and mobile applications. The service, which integrates with other patient care applications, helps with tracking, remote monitoring, behaviour change and provides peer and professional support to patients. In particular, the service helps patients with chronic diseases, which can be controlled but not cured. These diseases account for 75% of dollars spent on healthcare, so reducing costs and improving patient outcomes is the challenge Melon Health is taking on and delivering. A recent trial for Midlands Health Network saw over 80% of pre-diabetes patients using Melon Health’s platform achieve a number of measurable, positive outcomes.
Paying customers include health care payers, pharmaceutical companies and health care delivery organisations, and they have relationships with New Zealand, Australian and US partners, including the Mayo Clinic and UnitedHealthcare Kansas. These are large sales that take significant time, professionalism and credibility to land. As such, this is a much lumpier revenue business than some of the others we have invested in, but the larger deal sizes which Melon Health is targeting make it worthwhile. It is also important to note that generally speaking, Punakaiki Fund would normally steer away from the medical field, due to the high development costs and risks, but Melon Health’s platform is software, not a device, and so is compliant with all of the key regulators like the FDA.
Melon Health is based in Wellington with offices in Auckland and the United States.
The last investment was a rights issue led by Punakaiki Fund in April 2017. LWCM is active in the governance of Melon Health, with monthly board meetings, and a focus on strategic sales, financial management and accelerating growth.
Recent News and Updates