HealthTech Firm Neko, Co-Founded by Spotify CEO, Raises $65 Million

Swedish medical diagnostics company Neko Health has raised 60 million euros (about $65 million) to expand beyond its borders.

The company, co-founded by Spotify CEO Daniel Ek, announced the Series A funding in a Wednesday (July 5) press release, noting that it was the first time it had brought in outside capital.

The financing will help Neko recruit new talent, fund clinical research and invest in developing what the company said in the release is a new medical scanning concept that allows for “broad and non-invasive” collection of health data.

“Healthcare costs are spiraling out of control,” Neko Health CEO and Co-founder Hjalmar Nilsonne said in the release. “We believe preventive health will be key to reversing this trend. Doctors today just don’t have enough time or resources to focus on prevention. This leads to many health problems going unnoticed until they get really serious, causing a lot of pain and putting a massive strain on the healthcare system.”

The company’s 10-minute scan uses technology designed to help medical teams spot diseases such as skin cancer, cardiovascular disease and diabetes, according to the release. It is followed by a doctor’s consultation, immediate results and recommendations.

Despite the rising popularity of virtual medical visits, Nilsonne told Bloomberg Wednesday that for now, Neko will focus on in-clinic work.

Nevertheless, consumers are increasingly using digital tools to manage their healthcare, particularly boomers and senior citizens.

“As thousands of Americans age into Medicare daily, new research finds strong demand among this group for platforms that make managing aspects of their health plan benefits easier, ideally in one place, and not via a collection of portals from their various providers,” PYMNTS wrote last month.

In a joint interview for PYMNTS’ “Tough Questions” series, Lynx Co-founder and CEO Matt Renfro and Endear Health Co-founder and CEO Chris Boudreaux said COVID forced older consumers to quickly become familiar with digital. Now, they’re avid users.

“Over the span of a few weeks, video conferencing tools and mobile devices became the only way people could interact with their families, and that forced a lot of adoption,” Boudreaux said in June. “Digital literacy amongst the older population has never been higher. These folks are no longer just using digital tools, but they’re asking for them. It’s a great time for innovation.”