Healthcare Big Data Firm Protenus Secures $17M Series C Funding to Meet Surging Client Demand and Files Prospectus

On August 21, 2019, VCBeat (WeChat ID: vcbeat) learned that Protenus, a medical big data services company, announced today the completion of a $17 million Series C financing round to meet growing customer demand. Protenus will continue to collaborate with healthcare systems to maintain compliance in more innovative ways. The round was led by LTP, with participation from Kaiser Permanente Ventures, F-Prime Capital, Arthur Ventures, Lionbird, and Providence Ventures. Following the completion of this financing, Dr. Jared Kesselheim, Co-founder and Managing Partner of LTP, will join the Board of Directors of Protenus. Dr. Kesselheim is a veteran of the healthcare industry with 14 years of experience.

Protenus, founded in 2014, provides healthcare compliance analytics platforms for health systems to proactively identify organizational risks, such as inappropriate access to patient data, theft by hospital staff, and misuse of controlled substances. Protenus is transforming the healthcare industry through breakthrough artificial intelligence analytics technology.

“For hospitals, adopting digital technologies is crucial as it helps improve operational efficiency and reduce risks. Healthcare compliance analytics is becoming a vital component for health systems that seek to significantly scale their compliance workforce through artificial intelligence,” said Aaron Martin, Executive Vice President and Chief Digital Officer at Providence St. Joseph Health. “Healthcare compliance analytics platforms can help health systems proactively identify potential threats involving the organization, employees, or patients, and address them before they cause significant harm.”

Protenus has been recognized by Black Book and KLAS Research as the best solution for patient privacy monitoring. Protenus was also named a “Cool Vendor” in healthcare AI by Gartner and received the Annual Innovation Award for Data Security from Healthcare Informatics. In 2018 and 2019, Modern Healthcare named Protenus one of the Best Places to Work in Healthcare, and its co-founders, Nick Culbertson and Robert Lord, were finalists for the 2019 EY Entrepreneur Of The Year Award.

“Healthcare compliance analytics are rapidly gaining traction,” said Nick Culbertson, CEO and Co-Founder of Protenus. “We are delighted to see the Protenus platform consistently deliver high-quality analytical insights to our clients, helping them better protect patients and their data.”

Dr. Kesselheim stated, “Protenus is leading the industry by leveraging its expertise in healthcare compliance analytics to protect patient data and safeguard hospital workforces from the risks of clinical drug diversion. We are thrilled to collaborate with the Protenus team to continue driving innovation and development in the healthcare sector.”

LTP focuses on investing in private startups in the healthcare information technology and services sectors. Founded in 2016 by Todd Cozzens and Jared Kesselheim, M.D., LTP leverages its management team’s extensive network within the healthcare industry, along with decades of operational, clinical, and investment experience, to help startups build valuable businesses.

Providence Ventures, established in 2014, manages a $150 million venture capital fund on behalf of Providence St. Joseph Health (PSJH). The organization launched its second $150 million fund in December 2019, aiming to enhance venture capital returns through direct investments in innovative healthcare companies. Providence Ventures provides investment capital to companies addressing existing and emerging pain points in the healthcare sector. It collaborates with its portfolio companies to refine and promote existing healthcare solutions.

(Compiled by Tian Shuhang)