Local healthtech startup receives investment funding

Guidepost, a diabetes telemedicine startup has received a joint investment from AlphaCode, the fintech investment of Rand Merchant Investment Holdings, and local investment fund Endeavor.

Guidepost has received an undisclosed investment from AlphaCode and Endeavor. 

The investment into the innovative telemedicine startup comes at a time where effective digital healthcare solutions for diabetes patients are critical. With the undisclosed investment funding, Guidepost will be able to enhance its service to users and provide safe jobs for nurses and dietitians. 

Dominique Collett, Senior Investment Executive at RMI and head of AlphaCode comments on the investment made into Guidepost. 

“We believe in the work being done by Guidepost and continually invest in the technical tools that are enabling a technologically advanced future for our country. Guidepost has demonstrated its ability to reduce claims costs for clients and improve the lives of thousands of diabetics and we’re excited to support the growth and development of their services locally and internationally through this second-round investment. We also believe that the skilled leadership team could roll out this methodology for other diseases and chronic conditions.”  

The current pandemic posses a serious risk for the reported 4.6-million people with diabetes in the country as high blood levels are reported to increase the mortality risk when infected with Covid-19.

Professor David Segal, Chief Medical Officer and co-founder of Guidepost, further expands on the mortality risks associated with diabetes patients and Covid-19. 

“COVID-19 is far more serious for people with chronic conditions like diabetes and hypertension. A recent study by the provincial Health Department in the Western Cape found that diabetes was a factor in more than half of the province’s 2 000 COVID-19 deaths of people older than 20. As the risks related to chronic conditions are now more ‘real’, people are more aware of the risks and are taking the management of their chronic conditions seriously. They are looking to digital healthcare services such as telemedicine as safe, effective and efficient ways of managing their conditions.” 

Guidepost 

Founded in 2012, Guidepost has been transforming the telemedicine scene with its platform that enables highly personalised, data-driven diabetes management at scale. Since its launch, Guidepost has grown rapidly into a national network that provides a premium service to leading health insurers, life insurers, and pharmaceutical companies. According to the startup, it has to date served over 15 000 patients with an effective and affordable service. 

The digital platform connects diabetes patients with expert clinicians who are able to provide remote one-on-one individualised diabetes education and coaching aimed at reducing users’ blood sugar levels. 

Alison Collier, Managing Director at Endeavor, elaborates on the benefits offered for users of Guideposts’ digital platform. 

“Guidepost’s service is particularly relevant given the COVID-19 crisis – offering diabetic patients improved healthcare while simultaneously reducing the total care cost for these patients as patients using Guidepost are healthier.”

A digital future in healthcare 

In April 2020, the Health Professions Council of South Africa updated their guidelines on telemedicine, ensuring telemedicine is easier to access. 

“The COVID-19 pandemic and lockdown conditions have made digital healthcare services such as telemedicine the only option for many people, driving rapid adoption and use of the services. Many people who were initially sceptical of digital healthcare have found, through this ‘enforced use’, that the services are easy to use, convenient, lower cost, and often just as effective as in-person healthcare services. We believe these factors will drive a permanent shift to increased use of – and often a preference for digital engagement with healthcare providers even after lockdown lifts,” explains Professor Segal. 

“The recent investment will enable Guidepost to continue growing, serve its patients and support safe jobs for nurses and dietitians as diabetes coaches during these challenging times”.

Read more: RMI’s AlphaCode takes 25.1% stake in healthtech Guidepost
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Featured image: Guidepost Founders (from left to right) Graham Rowe, Richard Johnson, Prof. David Segal