Digital health company Carrot said today that it raised $25 million to commercialize its tech-enabled Pivot smoking cessation program.
The round was led by Johnson & Johnson‘s (NYSE:JNJ) strategic venture capital arm, JJDC. New York Life Ventures and existing investors Khosla Ventures, Marc Benioff, founder Dr. David Utley and R7 Partners also contributed to the financing round.
The Redwood City, Calif.-based company’s platform combines an FDA-cleared carbon monoxide breath sensor, a smartphone app, digital coaching and pharmacotherapy to help users quit smoking. Carrot plans to partner with self-insured employers and health plans to bring Pivot to market.
Crediting Pivot’s novel approach, Carrot touted that its program yields much higher enrollment rates compared to the national average for employer-delivered smoking cessation programs.
“Quitting smoking greatly reduces chances of developing smoking-related diseases, yet successful quit attempts require a multi-disciplinary approach,” Utley said in prepared remarks. “Given Johnson & Johnson’s expertise across its medical device, consumer health and wellness, and pharmaceutical sectors, we are excited to have JJDC lead this round as we believe it takes a concerted healthcare approach to address the consequences of smoking on a global scale. We’re also pleased to have the funding of New York Life Ventures and the continued confidence of our existing investors. Their support furthers our mission to help millions of people to quit smoking.”
“Carrot is a strong example of those companies that are driving exciting innovations at the intersection of digital health and life insurance,” Tim Del Bello, director of investments at New York Life Ventures, added. “These technologies have the potential to play a meaningful role in the future of the life insurance industry.”