Click here to read Aaron Weitzman's article on Axios Pro.

Why it matters:

Consumers are spending more on health and wellness but remain unsatisfied and seek more digital engagement and support.

Zoom in:

The round was led by M13, with participation from XYZ Ventures and True Ventures. "The company has a low burn and they've priced their contracts in a way where the gross margins are significant — and with software gross margins, they will only increase, as a level of automation continues to go up," says M13 partner Latif Peracha. Madan declined to disclose revenue for the company, which is not yet profitable.

How it works:

RadiantGraph analyzes data like medical claims, medication history and biometric information to track patterns in patient populations and help tailor care. It sells to health plans and healthcare organizations focused on substance abuse treatment, mental health care, chronic conditions, musculoskeletal disorders and other complex conditions.

The big picture:

Patients are increasingly judicious health care shoppers, and health care organizations that provide consumers with accessible, affordable and high-quality care will prosper above those that don't, per a McKinsey report.

What's next:

New funding will help drive the company's commercial strategy. "On the plan and the peer side, you have to build those proof points, so we will continue to add case studies. That's going to be a big push for us in the next 12 to 18 months," Madan says.

The bottom line:

"Consumer engagement plays a really important role and is actually fundamental to the economics of the health plan," Madan says.