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BFD Expert Voices - Health Tech Deals

BFD Expert Voices

Kontakt.io, a hospital staff and equipment tracking software company, hopes its recent $47.5 million round will help it keep nurses safe, CEO Philipp von Gilsa tells Aaron.

The big picture: A survey from National Nurses United found 80% of nurses experienced workplace violence in the last year — a phenomenon exacerbating the ongoing workforce shortage in health care.

Catch up quick: The unlabeled round, led by Goldman Sachs Asset Management's growth equity division, closed last month.

Founded in 2013, Kontakt.io has raised $68 million to date, last taking in $13 million from the European Investment Bank in 2022.

How it works: Kontakt.io makes Bluetooth-connected devices to attach to hospital equipment, and accompanying software that tracks the indoor locations of supplies, as well as people, within hospitals.

Nurses also have a smart badge with an integrated duress button that can locate them within seconds and dispatch security to their location as needed.

Between the lines: An added layer of protection is a bonus when it comes to attracting and retaining nurses, says von Gilsa.

The NNU survey found few employers have implemented violence prevention measures, like a room-flagging system to indicate potentially violent patients, or even security cameras.

Using Kontakt, nurses can also establish workflows that "let them de-escalate situations early," von Gilsa says.

Reality check: As workplace violence in hospitals increases, security guard  staffing has decreased.

Sixty-five percent of hospitals noted difficulty in retaining full, qualified security staff in the International Association for Healthcare Security and Safety Foundation's 2023 Healthcare Crime survey.

What's next: "In a perfect world, we won't need to raise again," von Gilsa says. The company is cash-flow positive, though the CEO declined to disclose financials.

What they're saying: "The company has 4 million devices in circulation now across a universe of predominantly U.S. hospital systems and that adds very differentiated data that didn't exist before," says Christian Resch, partner at Goldman Sachs Asset Management.

1 big thing: Kontakt.io wants to keep nurses safe

Illustration of a hundred dollar bill folded like a roadmap with navigation points dropped around it. 

A big health tech payments software vendor, Waystar, is seeking up to $1.04 billion in its IPO, per an SEC filing today.

Why it's the BFD: The IPO would be among the year's biggest, Axios' Claire Rychlewski writes.

Zoom in: The company backed by EQT and the Canada Pension Plan Investment Board plans to offer 45 million shares in a range of $20 to $23 per share.

At the top of its price range, Waystar would have a market value of about $3.98 billion, based on the amount of outstanding shares (about 173 million, if underwriters purchase all additional shares) listed in its filing.

Waystar's backers also include Bain Capital and Francisco Partners and affiliates, each of which owns 5% or more of the company's shares.

How it works: Waystar's software helps hospital systems and doctors' offices with bill collection and revenue cycle management.

The big picture: The global IPO market is slowly normalizing, though   uncertainty around the 2024 federal election is putting a slight chill on activity, New York Stock Exchange president Lynn Martin told Axios at a recent Axios event.

What we're watching: A warm reception for Waystar could help launch a process for rival Zelis, which was weighing a sale or IPO at the beginning of this year.

What's next: Waystar's shares could start trading as soon as next month.

2. The BFD: Waystar seeks $1B in IPO

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Want more health tech deals? Check out the Axios Pro Deals Tracker.

• Wayspring, a Nashville, Tenn.-based provider of value-based care for substance use disorders, raised an unlabeled $45m led by CVS Health Ventures with participation from insiders Valtruis, HLM Venture Partners and .406 Ventures. axios.link/3V1IEEo

• Spectrum.Life, an Irish enterprise-facing telehealth startup, raised an unlabeled €17m led by Act Venture Capital. axios.link/3QWSDJR

• HoneyNaps, a South Korean sleep disorder diagnosis startup, raised an $11.6m Series B from Korea Industrial Bank, Hi investment Partners and Quad Investment Management. axios.link/4bzOLad

• Goldman Sachs Alternatives acquired Xpress Wellness, a provider of health care services to rural communities and nursing home residents in Oklahoma, Kansas and Texas, from Latticework Capital Management. xpwell.com

• Med Learning Group, a portfolio company of DW Healthcare Partners, acquired Trumbull, Conn.-based medical education provider Talem Health. talemhealth.com

• TVM Capital Healthcare, a Dubai-based health care growth investor, closed its second Middle East fund, Afiyah Fund LP, with roughly $250m. tvmcapitalhealthcare.com

3. Deals o' the day

• Tom Langan, former Veradigm president and CCO, will become interim CEO effective June 7, when current interim CEO Yin Ho's term expires. axios.link/3yvFVLS

• Aaron Olson, former director at MTS Health Partners, joined Bourne Partners as managing director and head of health care services. axios.link/4dQdt7I

• Chris Wasden, former chief strategy officer at Twill, joined DarioHealth as head of pharma. dariohealth.com

• Paul Hart, former chief financial officer of Xcede Group, joined Navenio as CFO. Also at Navenio, Sven Albrecht, former director of engineering at Tractable, joined as VP of engineering. axios.link/4bw8DL9

• Linda Zespy, former director of digital health programs for Onduo at Verily, joined CareHive as VP of marketing. axios.link/3KhP2mb

• Don Hooker, former director at Capital One health care corporate banking, joined Bourne Partners as director and head of research. axios.link/3KESkQJ

4. It's Personnel

📉 Cencora says health info was stolen in data breach — TechCrunch

 🔍 Health, biotech startups get majority of Series As — Crunchbase News

🩺 America's docs need more obesity medicine training — Axios

5. Your daily dose

Illustration of a pill capsule as the bell hammer on an alarm clock.

💐 Welcome back from Memorial Day weekend, dearest gentle reader.

💸 Situational awareness: Melinda French Gates pledged an additional $1 billion to Pivotal Ventures, the investment organization she founded in 2015.

💰 Save the date: Axios BFD returns to NYC on Tuesday, Oct. 22. Details to come!

💕 Erin spent the 3-day-weekend with family from overseas, grateful the entire time to be with them in Tahoe instead of a desert music festival.

🪩 Thanks for reading, and extra thanks to newsletter editor Claire Rychlewski and copy editor Egan Millard. Please ask your colleagues, friends and family to sign up.

May 28, 2024

1 big thing: Kontakt.io wants to keep nurses safe