Clareto Secures Series A Funding to Expand Nationwide Health Data Network

VCBeat (WeChat Official Account: vcbeat) has learned that on February 21, 2019, digital health company Clareto announced the completion of its Series A financing, with the amount undisclosed. This round was solely led by Health Catalyst Capital Management to accelerate the nationwide expansion of Clareto’s proprietary health data network across the United States.

Following the completion of this funding round, Clareto will allocate additional human and financial resources to health data integration and market promotion.

Clareto is a digital health company based in Virginia, USA. Its core business is to provide users with health data collection and integration services, thereby facilitating life insurance companies and other relevant institutions in assessing users’ physical health conditions. It is reported that Clareto has established an electronic health data exchange process that complies with U.S. laws and regulations as well as HIPAA standards. Clareto may authorize user data to relevant institutions only after obtaining user consent.

According to foreign media reports, Clareto owns a data company called MedVirginia, which provides a health information exchange service platform. The company offers data query and document exchange services to healthcare institutions across the state of Virginia and in certain regions of the United States. In 2009, MedVirginia became the first company to engage in deep collaboration with EHealth Exchange, the largest medical information network platform in the United States. The platform covers four federal agencies, 75% of U.S. hospitals, as well as thousands of physician clinics, pharmacies, and dialysis centers.

“Today, nearly half of American households encounter difficulties when purchasing life insurance and other products that require health information underwriting. Although online underwriting and electronic applications are more convenient than any previous assessment methods, consumers may still face cumbersome underwriting processes or encounter other potential discriminatory factors, such as ‘credit scoring challenges’ and ‘geographic restrictions.’” said Dave Dorans, CEO of Clareto. “Clareto’s Data Health Network effectively addresses this issue.”

Charles Boorady, Founder of Health Catalyst Capital Management, stated, “Clareto has transformed the entire health data industry. Once users’ health data is stored on the platform provided by Clareto, authorized institutions requiring health assessments can promptly access this data through the Clareto platform upon user consent, thereby enabling rapid and efficient evaluation of users’ health eligibility. This significantly reduces the time required for coordination between users and relevant institutions, sparing users from unnecessary hassle. In the days ahead, we will continue to monitor Clareto’s growth and provide necessary financial support.”

Health Catalyst Capital Management is a venture capital fund established in 2015 and headquartered in New York State, USA. The firm primarily invests in U.S. healthcare IT companies experiencing rapid growth.

(Compiled by Hu Xuan)