PillPack, the Somerville-based medication management company, announced this morning that it has raised $8.75 million in a round of funding led by Accel Partners. The round was joined by Atlas Venture as well as High Line Venture Partners, QueensBridge Venture Partners, and individual investors Andy Palmer and David Tisch.
PillPack, which offers daily pre-sorted “packs” of prescribed medication, has previously raised money from Founder Collective and Atlas; at Atlas, the portfolio company was managed by Fred Destin. Destin moved to London in the spring, is now a partner at Accel, and will be taking the director seat on the PillPack board, along with Atlas’s Jon Karlen and David Frankel of Founder Collective.
Since launching its product in February, PillPack has reported steady growth. “The initial feedback has been awesome,” co-founder and chief executive TJ Parker said, “but we want to scale marketing.”
“There is a need and a desire to build awareness of the brand and the product,” he added. “The goal is to get the product into as many people’s hands as possible.”
In an email, Fred Destin said, “I’m not actively scouting for deals in Boston as I’m really focused on Europe…This is an exception driven by a close relationship with the founding team and what I consider to be a fabulous market opportunity.”
“I’ve not been involved with an investment so far that seems to get everyone excited like this,” Destin added.
PillPack is a service that should be hugely popular, with its home-delivery, pre-sorted pill packets, and ease of use online. However, not many potential customers know enough about the company’s product yet. This new funding could allow the company to ramp up its sales and marketing teams and get the word out. Destin believes that the market opportunity for PillPack is enormous, even hinting that they could expand the product to Europe soon.
