Exclusive: 1upHealth pockets $40M Series C
Health data company 1upHealth raised $40 million in Series C funds, CEO Joe Gagnon tells Axios exclusively.
Why it matters: This round, expected to get 1upHealth to profitability, will likely be the company's last fundraise, Gagnon says.
Details: Sixth Street Growth led the round with participation from existing investors F-Prime Capital, Jackson Square Ventures and Eniac Ventures.
- The money will go toward product development, addressing proposed and forthcoming CMS regulations, and building server-less scalability and open access.
- Funds will also support market expansion across payers, providers, pharma and digital health.
What they're saying: "In my opinion, that is a reasonable amount of money to make a company profitable," Gagnon says.
- "We are well-capitalized and I am confident that this round of financing can get us to a strong profit model," he says.
- "We have reasonable free cash flow and will not need to raise again unless there is another strategic reason. This will be our last necessary round," Gagnon adds.
- “The push within the health care sector to improve interoperability, regulatory compliance, and the patient experience has been a core theme of ours, and 1up stands out as a leader in the space," says Sixth Street managing director Lee Mooney, who will join 1up's board.
How it works: 1upHealth's cloud-based software platform is designed to help health plans and health systems boost interoperability and patient data-sharing capabilities.
- Roughly 75 enterprise health plans and health systems use the platform with more than 40 million patients.
- 1up's tools connect patient data with Fast Healthcare Interoperability Resources (FHIR) application programming interfaces to help clients remain compliant with data-sharing regulations.
Of note: 1up hopes to make key hires with the new capital, but retaining top talent is tougher than ever, Gagnon says.
- "Lots of top talent has been let go by others in the industry and we are hoping to take advantage of that," he said. "With the industry struggling, there are lots of people who are available or unhappy at their current roles."