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Photon, a prescription marketplace, raised $16 million in Series A funding, CEO Otto Sipe tells Axios Pro.

Why it matters: The company is taking aim at incumbents like TPG-backed Surescripts in the lucrative prescription administration market.

Follow the money: Healthier Capital led the round, joined by Notation, Flare Capital and Evidenced.

The fresh capital brings New York-based Photon's total raised to $32 million. 

What they're saying: Investors were interested in putting more than $50 million into the round, but the company wanted to retain more equity, Sipe says.

"We tried to keep the round reasonable," Sipe says. "There's so much hype happening right now around anything AI."

How it works: The company's virtual prescription marketplace shows price, availability and delivery options for patients.

Photon says it primarily sells to hospitals and health systems whose clinicians can benefit from the improved patient experience.

Clinicians' prescription orders are created, sent to patients who choose their preferred and Photon delivers status updates back to patients and prescribers.

Photon also offers automation tools for providers, spanning prior authorization and clinical decision support.

What's next: Photon's headcount is a modest 15, but the company plans to double its employees year's end.

Sipe says proceeds will be used to scale its engineering and commercial teams.

Flashback: Founded in 2021, Photon began as a prescribing tool for direct-to-consumer telehealth.

After building integrations across pharmacy networks, it began pitching the tool to health systems. 

Photon nabs $16M for prescription price transparency

Photon is taking aim at large incumbents like PE-backed Surescripts as it aims to take a piece of the lucrative prescription administration market.

Photon, a prescription marketplace, raised $16 million in Series A funding, CEO Otto Sipe tells Axios Pro.Why it matters: The company is taking aim at incumbents like TPG-backed <a class="gtmContentClick" data-vars-link-text="Surescripts" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2024/10/03/tpg-28x-ebitda-multiple-surescripts" data-vars-content-id="262b1468-b106-4704-a347-2350736aa38c" data-vars-headline="Photon nabs $16M for prescription price transparency" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2024/10/03/tpg-28x-ebitda-multiple-surescripts" target="_self">Surescripts</a> in the lucrative prescription administration market.

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Photon nabs $16M for prescription price transparency

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