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Florence Healthcare bumps Series C by $27M

Sarah Pringle
Jun 22, 2022
Illustration of code in a health cross symbol
Illustration: Aïda Amer/Axios

Clinical trial software company Florence Healthcare collected $27 million in a Series C-1 round led by existing investor Insight Partners.

Why it matters: Florence is one of few electronic trial master file (eTMF) software platforms out there, and one banking source familiar with the company tells Axios the Atlanta startup is taking share from industry incumbent Veeva.

  • "It's a really good tech solution in a market where there aren't a lot of competitors," the source adds.

How it works: Florence streamlines clinical trial workflows for study sites across 45 countries. That makes it easier to track, store and organize the massive amounts of key files that ultimately need to be submitted to regulators for compliance purposes.

  • If that massive library weren't organized ... "it would be a disaster," the source says.
  • The result? Remote access and connectivity for trial sites, sponsors and CROs. And ultimately, accelerated study timelines and more diversified cohorts.

By the numbers: Florence to date has raised $114.1 million, including an $80 million Series C in April 2021 led by Insight.

  • Other previous investors include Fulcrum Equity Partners, Bee Partners, and Flashpoint.
  • The company says there's a Florence software-equipped research site within 25 miles of 80% of the country’s population.

Between the lines: We're seeing a pick up in extension rounds by companies that did hefty raises during last year's boom.

  • "Whereas [companies] normally would go out and raise a new round from new investors, there's a hesitancy to do that," given the risk of an unattractive valuation or down round, one banker tells Axios.
  • For example, H1 Insights earlier this month raised an additional $33 million in funding from existing investors in a Series C extension, after raising $100 million six months earlier.
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