Nomad Health Secures $34 Million in Funding to Double Workforce and Expand Market Reach

On August 15, 2019, VCBeat (WeChat ID: vcbeat) learned that online healthcare staffing company Nomad Health announced it had raised $34 million in new equity and debt financing. Nomad is transforming workforce allocation in the healthcare sector. Leveraging an advanced technology platform, Nomad Health enables nurses and physicians to work as freelancers, addressing the severe shortage of clinicians across the United States.

This funding round was led by Icon Ventures, a venture capital firm headquartered in Palo Alto, United States. Polaris Partners, RRE Ventures, .406 Ventures, and Silicon Valley Bank participated as co-investors.

Dr. Alexi Nazem, Co-founder and CEO of Nomad Health, stated, “This financing validates our success and provides the momentum for our continued growth. Nomad Health’s mission is to build a modern healthcare workforce platform that eliminates barriers between healthcare providers and patients. The robust technology and ample capital brought by Icon will ensure we fulfill this mission.”

In the three years since its launch, Nomad Health has demonstrated strong growth momentum. Nomad now provides job opportunities to more than 4,000 healthcare institutions across the United States, including many of the nation’s top hospitals. Thirty percent of the positions offered by Nomad are located in non-urban areas, where clinician shortages are most acute. Currently, nearly 100,000 clinicians are registered on the Nomad platform, with 45% actively seeking employment. As a result, the company’s revenue has increased by nearly 500% over the past 12 months.

Tom Mawhinney, General Partner at Icon Ventures, commented, “We are enthusiastic about Nomad’s business plan, as the company is addressing two critical challenges facing our nation’s healthcare system: provider burnout and workforce shortages. Nomad’s success has had a profound impact on both patients and healthcare providers, and I am delighted to partner with the company. Nomad is poised to become the preferred talent platform for healthcare professionals and health systems.”

To meet growing service demands, Nomad plans to use the funds from this financing round to double its workforce and expand its business scope. The company’s New York City headquarters aims to increase its employee count from 50 to 90 by the end of 2019. Additionally, the company announced that it has opened an office in Charlotte, North Carolina.

In addition to new financing, Nomad announced that Bob Livonius has joined the company’s Strategic Advisory Board. As a human resources executive, Livonius brings extensive experience in healthcare staffing and has been inducted into both the American Staffing Association Leadership Hall of Fame and the HRO Today Analyst Hall of Fame. During his tenure as CEO of Medfinders, Livonius introduced the managed service provider (MSP) model to the healthcare staffing industry and, following Medfinders’ acquisition by AMN Healthcare, helped AMN grow into an industry leader.

Livonius stated, “As the first company to provide online employment services to clinicians nationwide, Nomad Health is an innovator in the healthcare human resources sector. The company is developing new solutions that are urgently needed by healthcare professionals. I am eager to collaborate with Nomad Health to help it undergo another transformation.”

Dr. Nazem stated, “We feel very fortunate to have such an accomplished and forward-thinking advisor join our team. Livonius will bring rich experience and industry knowledge, which are invaluable to our business. As Nomad Health scales its operations extensively and explores new market opportunities, we look forward to his guidance.”

Nomad Health is a Joint Commission-certified technology company dedicated to providing new solutions for the $20 billion healthcare staffing industry. Nomad Health has established the first online marketplace for clinical jobs, connecting nurses and physicians with healthcare facilities. Nomad offers clinicians higher compensation, reduces costs for health systems, and provides a simple, transparent service process for the entire market.

Icon Ventures, headquartered in Palo Alto and San Francisco, USA, is a venture capital firm focused on Series B and Series C financing rounds. Icon Ventures manages over $1 billion in assets. The firm has successfully invested in numerous companies, including Aster Data (Teradata), FireEye (FEYE), Experian, Infinera (INFN), MoPub (Twitter), Opcity (News Corp), Palo Alto Networks, Proofpoint, and Teladoc (TDOC).

(Compiled by Tian Shuhang)