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Exclusive: Tech-enabled Local Infusion bags $10M Series A

Illustration of a saline bag solution with money as the liquid in the bag.

Illustration: Aïda Amer/Axios

Tech-enabled infusion provider Local Infusion bagged $10 million in Series A funding, CEO Woody Baum tells Axios exclusively.

Why it matters: Investors have been eager to pump funds into infusion networks outside hospitals to disrupt a $100 billion-plus market that's been historically dominated by OptumRx and Option Care Health.

Details: Blisce led the round and Meridian Street Capital participated, alongside several previous investors.

  • Funds will flow into to expanding Local's footprint with 16 new centers in four additional states, hiring leaders across operations, payor partnerships, finance, business development, and marketing, and honing its referral and care coordination tech.
  • Baum says Local is at a $25 million revenue run rate, and declined to say when he thought the company would raise a Series B.

Be smart: The infusion therapy market is projected to grow at 8.6% CAGR through 2025, as patients and payors demand more cost-effective, high-quality infusion providers outside traditional settings, according to a recent Harris Williams report.

How it works: Based in Nashville, Local offers patients with chronic conditions infusions in private rooms.

  • The company offers a dedicated infusion guide to answer questions about care and billing and uses technology to streamline the referral and onboarding process.
  • Local accepts insurance from Anthem, Aetna, Cigna, Humana, Medicare, United Healthcare, and others.

Flashback: The startup closed a $4 million seed round last November led by Brand Foundry Ventures and Meridian Street Capital.

What they're saying: "What other industry touches their patients every month, every two months, indefinitely?" says Baum. "It's a very powerful relationship."

State of play: As demand drips into ambulatory infusion centers, relevant recent deals include...

What's next: Baum foresees Local building an additional 25 centers the year after the next 16 locations open.

  • "There's still a lot of white space [in the infusion sector]," says Baum, "and many states with few low-cost options."
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