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DC to VC Finalists Announced

Posted on September 18, 2012 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

DC to VC has become a place for healthcare startup companies to pitch their company at Health 2.0. Plus, Health 2.0 has wisely partnered with Morgenthaler Ventures and in particular Missy Krasner for the event. I also love that they have Jeff Tangney, CEO of Doximity (Founder of Epocrates as well) as the keynote speaker for the event.

The companies that will be pitching at DC to VC are listed below:

Series A Finalist Companies:
  • GSI Health
  • Beyond Lucid Technologies
  • CarePlanners
  • Starling Health
  • AgeTak
  • HealthLoop
  • Comprisma
  • NudgeRX
Seed Stage Finalist Companies:
  • Nephosity
  • Force Therapeutics
  • United Preference
  • Aidin
  • Capture Proof
  • Genomera
  • Cara Health

It’s a great time to be a healthcare IT startup company. In the DC to VC finalist announcement they offered these stats on the health IT investment landscape:

  • Venture capital funding for Health IT reached $293M for Q2 2012I according to a report by communications and consulting firm Mercom Capital Group. Sixty-one investors participated in 28 deals. The report also identified 39 merger and acquisition deals worth $2.9 billion in Q2 2012.
  • In 2011, capital investments in Health IT generated 86 deals worth $633M. There was a 26% increase in deal activity from the year before and a 22% increase in capital raised.
  • 92 VC firms invested in digital health in 2012 thus far (2012 Mid Year, Digital Health Funding Report, Rock Health)
  • B2B funding is the majority of the deals with B2C funding increasing slightly in 2012. (2012 Mid Year, Digital Health Funding Report, Rock Health)

I’m so busy traveling in October that I’ve sadly had to scratch Health 2.0 from my list of conferences. However, this announcement makes me want to make a day trip to San Fran to attend the event.

$34 Million Series C Funding for Practice Fusion

Posted on June 28, 2012 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Artis Ventures led the Series C funding round for Practice Fusion. They raised $34 million in this round with them now having raised over $64 million total. The full list of investors joining the Series C round includes long-time investors Felicis Ventures and Band of Angels, plus Glynn Capital, Ali and Hadi Partovi, Founders Fund, Morgenthaler Ventures, Scott Banister, SV Angel, Ghost Angel, and several other institutional and individual investors.

Some other good stats from the Techcrunch article on the EHR investment:
*Currently 170 employees, and expect to reach 250 employees by year’s end
*Added 4x a many users as Allscripts last quarter (Who Ryan Howard considers their largest competitor)
*2012 Q1 Revenue was “comfortably in the seven figure range”
*Hosts 40 million patient records
*150,000 doctors signed up (This is their signed up user number, not their active user number)
*7 months ago they were at 25 million records and 130,000 signups

I also found this Techcrunch quote fascinating: “Howard was careful choosing Artis Ventures to lead the round, telling me “it’s a wedding. You’re married to that investor. Artis is a hedge fund with a venture fund. It’s preparing us. It’s who would be buyers in a public market” indicating the company has its sights on an IPO.”

It’s worth noting that the founding doctor/CMO (Chief Medical Officer), Robert Rowley, MD, also recently left Practice Fusion. He’s still actively blogging about healthcare IT on Robert Rowley, MD and he tells me it was an amicable departure. I think it’s noteworthy though since Dr. Rowley was the physician face of Practice Fusion since the start of the company.

There’s no doubt that Practice Fusion is now a major player in the EHR world. Although, I’m still interested to see if they can live up to a $64 million financing at around a half a billion dollar valuation. I wonder how quickly things like having their software built using Flash will catch up with them. Plus, Practice Fusion was designed with the small doctor office in mind. Will it be able to evolve its platform to be able to support larger group practices?

I do think they have the right culture when it comes to opening up their data to other outside developers that will be required for them to have a widely adopted healthcare platform. We’ll see how the healthcare ecosystem responds to that type of open platform. They now have plenty of money in the bank to be able to find out.

Full Disclosure: Practice Fusion is an advertiser on a couple Healthcare Scene websites.