HealthVerity Secures $25 Million Series C Funding to Advance Healthcare Data Sharing Platform and Prepare for IPO

VCBeat (WeChat ID: vcbeat) has learned that on April 3, 2019, U.S. healthcare information technology company HealthVerity announced the completion of a $25 million Series C financing round. The round was led by Foresite Capital, with participation from Greycroft Partners and Flare Capital Partners. Blank Rome LLP served as legal counsel to HealthVerity in this transaction.

Since its establishment in 2014, HealthVerity has raised over $42.2 million in cumulative funding, having completed its Series A and Series B financing rounds in 2016 and 2017, respectively. The proceeds from this round will be used to enhance the company’s technology platform and prepare for an initial public offering (IPO).

Financing History (Source: Crunchbase, VCBeat)

Headquartered in Pennsylvania, USA, HealthVerity aims to enhance the transparency and accessibility of healthcare data. The company leverages artificial intelligence technologies to collect, analyze, and transmit vast amounts of medical data, while prioritizing data privacy protection. HealthVerity has established partnerships with over 100 hospitals, pharmaceutical companies, medical device manufacturers, and health insurance providers, integrating the upstream and downstream information chains of the healthcare industry to streamline data extraction and analysis processes.

Marketplace Schematic (Source: HealthVerity Official Website)

HealthVerity has three main business directions:

1. HealthVerity Marketplace: The industry-leading cloud-based information platform for collecting and disseminating large volumes of healthcare industry data;

2. HealthVerity Census: Resolves the issue of cross-enterprise patient identity integration by assigning unique IDs to patient data. Enables synchronized data exchange across multiple enterprises, significantly improving diagnostic accuracy and reducing monthly operational costs by 30%.

3. HealthVerity Consent: Leveraging blockchain technology to aggregate and manage customer data usage permissions.

Consent Schematic Diagram (Source: HealthVerity Official Website)

“The widespread digitization of medical records has facilitated patient care,” said Jim Tananbaum, CEO and Managing Director of Foresite Capital. “By integrating data through technology, HealthVerity has significantly improved communication efficiency between patients and healthcare institutions. We are delighted to support HealthVerity’s growth.” As part of the transaction, Jim Tananbaum will join HealthVerity’s board of directors.

Andrew Kress, Co-Founder and CEO of HealthVerity, stated, “HealthVerity has become an industry leader in effectively managing data amid the evolving regulatory landscape. This competitive advantage is a key reason why investors are optimistic about the company’s future growth.”

Foresite Capital is an early-stage venture capital firm focused on the healthcare and life sciences sectors, with offices in San Francisco and New York. The firm has launched four funds, invested in a total of 57 portfolio companies, and currently manages approximately $2 billion in assets. Foresite Capital employs a unique investment model grounded in rigorous scientific theory and data analysis, wherein technical experts, clinicians, and investment analysts collaboratively make investment decisions.

Greycroft Partners is a U.S. commercial bank established in 2008, providing financial advisory and investment management services to clients across various industries.

Reference Links:

https://healthverity.com/

https://www.businesswire.com/news/home/20190403005862/en/HealthVerity-Announces-25-Million-Series-Funding

(Compiled by: Yang Shaobo)