One of the biggest challenges healthcare faces centers around data, with the industry increasingly investing in data management and privacy. As an illustration of how serious the health industry is about the issue, HealthVerity, a startup that seeks to transform how modern healthcare institutions make critical and defining decisions, particularly when it comes to handling patient data, has raised $25 million in a Series C financing round.
The financing round was led by existing investor, Foresite Capital with participation from Flare Capital Partners, Greycroft Partners and other existing investors. The latest financing round follows a 2016 Series A financing round that raised $7.2 million and a Series B round that raised $10.1 million the following year.
This brings the total venture capital funding that the startup has raised to $42.3 million.
HealthVerity, which describes itself as a trusted foundation for the rapid creation, exchange and management of healthcare and consumer data, said it will use the money to support continued growth and investment in its technology platform and go-to-market activities.
Also, the startup said it plans to expand its customer base and broaden its health care and consumer data provider ecosystem. HealthVerity Chief Operating Officer, Andrew Goldberg was quoted saying the Series C financing was a “tremendous vote of confidence in our data interoperability and privacy management technologies.”
The close of the financing round comes as the startup is still basking in the glory of its 2018 successes, through which the firm says it expanded its customer base to more than 100 of the top pharmaceutical manufacturers, health insurance payers, pharmaceutical services firms and healthcare services organizations.
HealthVerity Chief Executive Officer and co-founder, Andrew Kress said the startup was now “uniquely equipped to deploy software solutions that more efficiently manage and govern data in accordance with an ever-changing regulatory environment, but that is exactly the reason that top Pharma and Payers are gravitating to our platform.”
A growth opportunity for the startup, which was founded in 2014, has been the widespread digitization of medical records.
Foresite Capital Chief Executive Officer and Managing Director Jim Tananbaum said: “By building technologies that solve long standing challenges in the way that data can be organized, linked and licensed, HealthVerity has significantly enhanced the insights available on the patients and members of its valued customers. We are excited to support HealthVerity’s next phase of growth.”
Tananbaum will now join HealthVerity’s board, as part of the investment.
In a statement, the startup said its success was bolstered by the rapid customer adoption of HealthVerity Census, a SaaS solution for activating, de-identifying and linking data across the enterprise and beyond, HealthVerity Marketplace, the industry’s leading cloud platform for discovery and licensing of broad scale healthcare and consumer data in a privacy-protecting manner, and HealthVerity Consent, a blockchain-driven platform for managing patient and consumer permissions in an immutable and auditable manner.
HealthVerity says it seeks to enhance the utility, transparency, availability and cost efficiency of traditional and emerging healthcare data. The startup employs innovative technologies to help clients discover, license and link patient data across the widest range of top tier data providers.
The firm developed a blockchain-based platform to the stage fo set the stage for the rapid generation, sharing, and management of patient and healthcare data. Importantly, as we have noted, HealthVerity’s state of the art technology platform makes sure regulatory compliance is observed by establishing a shared, unalterable record of all patient consent transactions that happen within a healthcare facility. This way, only parties with express permission can access patient data on the fly without compromising its security and consumer privacy.
CIO Techie website explained that HealthVerity has two primary customers – buyers and data providers. The former is comprised of healthcare service organizations like pharmaceutical manufacturers, payers, hospitals, and retail pharmacies, while the latter is made up of firms seeking to expand distribution or maintain better control of the licensing of de-identified healthcare data for research purposes.