Austin health care startup Medici collects $24.2 million in new funding

Startup's mobile app lets users text doctors, get prescriptions and exchange information.

Posted November 29th, 2016

Medici, an Austin startup whose mobile app connects doctors and patients, has raised $24.2 million in new funding.

The company received the money from 10 investors, according to a filing with the U.S. Securities and Exchange Commission. Medici previously raised $8 million in seed money from six undisclosed private investors.

Last month, Medici launched a mobile app to connect patients with their physicians by text between scheduled appointments.

The app lets users contact a doctor, veterinarian or therapist and receive consultations, e-prescriptions and referrals.

"Right now, to have a conversation with a doctor, you have to schedule an appointment, drive, park, fill out paperwork, sit in a waiting room and speak to a nurse," Medici founder and CEO Clinton Phillips said last month. "It's time consuming for both sides."

Using the app, which is compliant with HIPAA federal privacy regulations, patients can also share photos and video, and see their entire consultation history in one place.

Phillips on Tuesday declined to provide details on the new investment, but said "we will be using the funds to grow across the US, UK and Southern Africa."

After downloading the free app from the Apple App Store, Google Play or the Medici website, patients pay a fee that is equivalent to a co-pay, typically $25 to $50, for a 10-minute consultation. Patients can pay with a health savings account or a credit card. Medici takes a transaction fee, and the remainder goes to the doctor.

Medici is working with 50 doctors in Texas, mostly in Austin, and 50 doctors across the country.

"Doctors have been very receptive," Phillips said. "They're getting texts, they're getting calls, and nurses are popping into their offices 50 times a day. Here we have a platform that allows them to get paid. We are currently working with a few health systems that will put on thousands of doctors over the next six to 12 months."

Phillips previously founded two startups, Houston-based 2nd.MD, which provides direct access via video and phone to research doctors in the U.S., and Aspen Back & Body, a Colorado-based clinic focused on nonsurgical rehab for back problems, which was acquired in 2009.

The company has about 25 employees, and its Austin team works out of the WeWork co-working space downtown.