Another HealthTech in Unfold.vc’s portfolio. Exchange-traded fund with investment in U.S. subscription dentist
US-based Wally Health, with a mission to revolutionize dentistry by combining innovative dental clinics with a subscription model, has caught the attention of international investors, including Wroclaw-based Unfold.vc. The fund joined a $3 million round in which funds also poured money into the company’s development: Bling Capital and GFR Fund from the United States, Myelin VC from Spain or investor Jack Abraham, head of US-based Atomic.vc.
“This is an investment that was influenced by many factors, those even written out in textbooks about Venture Capital. Founders with experience, great traction, a company growing tens of percent month-on-month, a huge dental market in the United States, and on top of that a real problem with the many pathologies of the health sector in the US. The somewhat dormant dental segment there needs innovation. Our fund’s mission is to support change leaders, and Wally Health is among the game changers. The startup’s solution fills a market gap, offering Americans a new quality of treatment. That’s why we decided to invest in the company.”
– says Rafal Sobczak, managing partner at Unfold.vc
Wally Health offers available 24/7, cost-effective and patient-centered comprehensive dental services in a subscription model. The startup was founded in 2020. Founders include those already experienced in fintech and media industries, among others: Tyler Burnett, Stipe Latkowic and Chelsea Patel. The company will use the capital raised to develop a network of modern dental clinics and strengthen its staff, both dentists and hygienists.
Hollywood smile vs. numbers
The legendary snow-white smiles of American celebrities are a symbol, but certainly not the standard anymore. The structure of the dental market in the U.S. means that patients, due to the potential high cost of treatment, do not regularly check their dental health, and often delay decisions to go to a specialist at all. The infamous statistics confirm this. According to the company, citing industry data, more than half of Americans over the age of 65 do not receive dental care at all, and 85 percent of ‘millenials. ‘millenials’ have tooth decay.
“Private health care in the United States equates to very high treatment costs. Patients don’t know what kind of bill they will ultimately get and what will be covered by the insurer. Also, not everyone uses health insurance, and it doesn’t always include a so-called dental care plan. Dental offices often take advantage of these situations. The market does not focus on prevention and proactive dental care, because this naturally limits profits from the next, more financially demanding stage of treatment. It happens more than once that doctors perform procedures that are not necessary. An example? Sealing is even common, and often completely unnecessary.”
– explains Tyler Burnett, founder of Wally Health
Hybrid approach
Wally Health’s focus is thus on prevention and proactive care for patients, and innovative, technology-based clinical practices and advice from qualified staff can be enjoyed both in-office and online. For an annual subscription fee of $199, the company offers unlimited dental checkups, hygiene services, 3D imaging, and do-it-yourself teeth whitening using the company’s innovative tools and materials. In diagnoses, doctors use advanced analytics based on artificial intelligence, as well as automated and precise methods to assess a patient’s health. Subscribers can enjoy an online appointment through an intuitive “one click booking” platform or 24/7 customer service.
Wally Health recently opened its second dental clinic in New York City – after Upper Eastside, in the Tribeca neighborhood. The ambition is to expand the inpatient business first to NYC and eventually nationwide. Thousands more members are joining the Wally Health community at a rapid pace.
“Americans don’t want to pay $450 for a one-time service that most often multiplies subsequent visits to the dentist anyway. We estimate that as much as $22 billion is spent each year on unnecessary dental procedures. This situation is influenced, among other things, by large insurance players who have managed to capture the market. We leave out the middlemen. We were created to give a new quality, listening to patients’ needs and reacting in advance. With our advanced solutions, combining online and offline offerings, dental services are about comfort, saving time and money.”
– says Tyler Burnett.
The US dental market is valued at more than $120 billion. The company sees its customers primarily in Americans without health insurance that covers dental treatment – some 76 million people are involved. New York alone accounts for 8 million potential Wally Health subscribers.
