Valence Health, a Chicago, IL-based provider of clinical integration, population health and value-based care solutions, received a $15m growth equity investment.
The round, the second one in its nearly 20-year history – the first being $30m in the summer of 2012 (read here), was led by Heritage Group, with participation from Foundation Medical Partners, GE Ventures, and North Bridge Growth Equity.
The company will use the funds to invest in additional software development, sales and marketing, and client management resources.
Led by CEO Phil Kamp, Valence Health provides value-based care solutions for hospitals, health systems and physicians to achieve clinical and financial rewards for managing patient populations. The company works with clients to design, build and manage value-based care models customized for each client including clinically integrated networks, bundled payments, risk-based contracts, accountable care organizations and provider-sponsored health plans. Its 600 employees currently serve 39,000 physicians and 130 hospitals.
Following the investment, the Board of Directors is comprised of: Kamp; President and co-founder Todd Stockard; Rock Morphis of Heritage Group; Doug Kingsley of North Bridge Growth Equity; Dr. Chris Kryder, founder of d2Hawkeye and former CEO of Verisk Health; Bob Sheehy, former CEO of UnitedHealthcare; and George Lynn, former CEO of AtlantiCare and two-time Board Chair of the American Hospital Association. Board Observers include Roshen Menon of North Bridge Growth Equity and Bill Geary of Foundation Medical Partners.
About Heritage Group:
Heritage Group is a Nashville-based, venture capital firm with over 25 years of experience financing and operating healthcare companies at all stages. Created by a diverse group of the nation’s leading healthcare services firms, the Heritage Healthcare Innovation Fund is a $167M strategic initiative focused on investments in businesses that improve the delivery of healthcare services.
About North Bridge Growth Equity:
North Bridge Growth Equity, and its affiliate North Bridge Venture Partners, actively partner with founders and entrepreneurs of market leading companies, who are using technology to disrupt and reinvent big markets. With $3.8 billion of capital under management, the firm has funded more than 170 companies creating many billions in market value. Among those firms are Acquia, Actifio, Clarity Software Systems, Dyn, Demandware, Proto Labs, Starent Networks, Seniorlink, Smart Pak and Valence Health. The firm has offices in Waltham, MA and Palo Alto, CA. To learn more about North Bridge go to www.northbridge.com.
About Foundation Medical Partners:
Foundation Medical Partners is a team of proven healthcare technology venture capital investors known for delivering strategic industry resources, insight, and total commitment to the success of the entrepreneurs with whom they partner. Founded in 2001 and expanded in 2013, current and prior investments of the general partners and the firm collectively include Valence Health, Humedica (Optum Analytics), Predilytics, Rise Health (Best Doctors), SynapDX, eBenX (ADP), Pharmetrics, (IMS Health), Functional Neuromodulation, CardioMEMS (St. Jude Medical), CardioNet and T2 Biosystems.
About GE Ventures:
GE Ventures is committed to identifying, scaling and accelerating ideas that will make the world work better. Focused on the areas of software, advanced manufacturing, energy and healthcare, GE Ventures helps entrepreneurs and start-ups succeed by providing access to GE’s technical expertise, capital and opportunities for commercialization through GE’s global network of business, customers and partners. GE Ventures offers an unparalleled level of resources through its Global Research Center, including: 35,000 engineers; 5,000 research scientists; 8,000 software professionals; as well as 40,000 sales, marketing and development resources in over 100 countries. For more information, please visit http://www.ge.com/company/ge-ventures.