Cortica Closes $75 Million in New Funding Round and Acquires Springtide Child Development
Acquisition Includes Six Autism Centers in Connecticut and Massachusetts and Establishes Major Physical Presence for Cortica in Northeastern U.S.
Company also Acquires Melmed Center, a Leading Developmental Pediatrics Group in Arizona
SAN DIEGO, April 18, 2023 /PRNewswire/ -- Cortica, the leading physician-led autism services company that treats the whole child and helps children with developmental differences thrive, has closed a $75 million financing and acquired Springtide Child Development. The funding round was led by Deerfield Management and Optum Ventures. In the acquisition of Springtide, a premier integrated data-driven autism provider in the Northeast, Springtide's investors have rolled their equity entirely into Cortica. Cortica has also acquired the Melmed Center, a leading developmental pediatrics clinical and research group based in Arizona. The company now owns and operates 23 integrated autism centers across the country.
Additional new investors include RA Capital Management and Echo Health Ventures, alongside existing Cortica investors Longitude Capital, .406 Ventures, Questa Capital, Ajax Health, Aperture Venture Partners, and the Autism Impact Fund.
"We've been very impressed with Springtide's product and clinical quality. Our combination brings together two leaders in whole-child autism care and enables us to extend Cortica's medical model to Springtide's centers," said Neil Hattangadi, M.D., Co-Founder and CEO of Cortica. "We've also long admired the Melmed Center's research and clinical capabilities and are thrilled to welcome them into Cortica as our platform for growth in Arizona. We're honored to have Deerfield, Optum, RA, and Echo join our investor syndicate, which now includes five of the country's leading health plans. This represents an important validation of our clinical outcomes, payer cost savings, and custom technology platform Axon."
"Springtide and Cortica share the same passion and holistic approach to serve children and families living with autism and neurodevelopmental differences," said Jia Jia Ye, Springtide's Founder and CEO. "Our entire organization is energized to come together as one company, enabling us to provide even more services and care to those who depend on us as trusted partners."
"As a physician, former state Medicaid chief executive, and national health plan executive, I couldn't be more excited about Cortica's national leadership role in defining integrated care for children with autism as a new category for value-based care," said Julian Harris, M.D., Operating Partner at Deerfield. "The investment in Cortica and acquisition of our portfolio company Springtide will also accelerate the value-based care agreements that both companies have in the Northeast. Cortica's validated whole-child care model delivers better outcomes at lower cost and represents the future of autism therapy."
Since its founding in 2017, Cortica has grown into an organization with more than 1,600 employees, including pediatric neurologists, developmental pediatricians, epileptologists, pediatric nurse practitioners, speech language pathologists, occupational therapists, physical therapists, music therapists, board certified behavior analysts, registered behavior technicians, social workers, marriage and family therapists, care navigators, and more. The company has also built the Cortica Innovation Network, a team of researchers and physicians who conduct outcomes research and are a global leader in clinical trial recruitment. Their work advances the neurodevelopment field and informs the Cortica Care Model with the latest breakthroughs in therapy and medical care. Through Cortica's organic growth and new acquisitions, the company will serve more than 10,000 neurodivergent children and their families this year.
About Cortica Inc.
Cortica's mission is to design and deliver life changing care – one child, one family, one community at a time. Cortica was founded to fix the fragmented journey families typically navigate while seeking diagnoses and therapies for their children. The company seamlessly blends neurology, research-based therapies, and technology into comprehensive care programs. Cortica's coordinated approach leads to best-in-class member satisfaction and empowers families to achieve long-lasting, transformative results. For more information, please visit corticacare.com.
About Deerfield Management
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy. The Firm works across the healthcare ecosystem to connect people, capital, ideas and technology in bold, collaborative and inclusive ways. For more information, please visit deerfield.com.
About Optum Ventures
Optum Ventures is the independent venture fund of UnitedHealth Group. Optum Ventures invests in digital health companies that use data and insights to help improve consumers' access to healthcare services and how care is delivered and paid for, and that make the health care system more reliable and easier to navigate. For more information, visit optumventures.com.
Media contact: Dan Tarman [email protected]
SOURCE Cortica Inc.
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