Preveta Raises $2 Million in Seed Round to Improve Cancer Detection

By Jemima McEvoy Saturday, April 3, 2021

Los Angeles-based startup Preveta has raised $2 million in a seed funding round. The company specializes in software that aids with the early detection of serious diseases like cancer. This is the largest sum the startup has raised to date — and could go a long way in helping the business compete in the competitive, nearly $10 trillion global healthcare market.

A doctor working on a tablet.

What Is Preveta?

Preveta is a care coordination company launched by husband-wife duo Victor and Shirley Lee, along with Steven Hu, in 2018. The founders — who collectively boast many years of experience in the healthcare industry — came up with the idea after the Lees helped a friend through a Stage 4 ovarian cancer diagnosis. “We realized all of the things that should have been done and not done, but we were too slow,” Victor Lee told Crunchbase in a recent interview.

From there, the business plan for Preveta started to materialize. The startup aims to improve the healthcare industry by focusing on early intervention for serious diseases. The company sells software that relies on data and artificial intelligence (AI) to boost coordination between medical practices and hospital systems. With this streamlined approach, professionals will be quick to diagnose and treat diseases (the business is currently focused on urology and cancer).

Money and Investors

The money raised in this recently closed round makes up almost all of the fundraising Preveta has done to date. The startup raised $120,000 in a pre-seed round in July 2020 led by Techstars Los Angeles Accelerator, a program that helps entrepreneurs launch and foster their businesses.

Then, in the seed round closed this month, the company pulled in $2 million. This round was led by MaC Venture Capital, a California-based seed-stage venture capital firm focused on technology startups, and TSVC, one of Silicon Valley’s leading investment firms.

The Future of Preveta

The startup just launched its platform last year amid the chaos of the COVID-19 pandemic. Therefore, the company plans to use its fundraising money to help build a brand through sales and marketing. Though still in its early stages, the business is already working with six large medical groups and roughly 2,000 patients.

Preveta isn’t the only startup eyeing a slice of the expanding telehealth and remote health monitoring market, which is on track to reach $559.52 billion in value by 2027. Other startups, including TytoCare, are employing AI technology to improve diagnosis and treatment. Halo Diagnostics, a California-based company, recently raised $19 million in a Series A fundraising round with the stated mission of improving the processes used to diagnose serious illnesses like cancers and dementia.

Final Takeaways

While the business may be battling it out against other startups, Preveta has the benefit of a compelling mission, experienced founders, and (now) a significant chunk of capital. The focus will be on creating a strong brand and expanding services, as the startup has a strong start under its belt.

MaC Venture Capital Managing General Partner Adrian Fenty best described the pull of this specific business when commenting on the funding round. “At its core, we are confident that it will be a great company because of the team, but the bigger hope is that through AI and their unique use of data for patients, providers and clinicians, that their solution can be used in a broader context, as well as all over the healthcare arena.”

About the Author

Headshot for author Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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