Awarepoint Raises $9M, Names New CEO to Crack Hospital Market for Real-Time Tracking
This is “Day 3″ on the job for Jay Deady, who was named as the new president and CEO today at San Diego-based Awarepoint, which uses wireless mesh networking and RFID technology to track just about anything that moves inside a hospital, clinic, or medical center.
I figured that’s plenty of time for the new Awarepoint CEO to articulate his strategy, and Deady, believe it or not, was actually willing to discuss at least some of his thinking. Deady also says the seven-year-old startup recently raised $9 million in a combination of equity and debt, although it’s being reported incorrectly as almost $3.3 million, based on a Form D regulatory filing that reflects only part of the overall deal.
He adds that all of the company’s existing investors participated in the equity part of the deal, which represents new money since Awarepoint raised $10 million in March.
Deady was previously the Atlanta-based executive vice president of client solutions for Eclipsys (NASDAQ: MDRX), a health IT technology provider now known as Allscripts after merging with Allscripts Misys just three months ago. Deadywas previously a senior vice president at McKesson Provider Technologies, another health IT company based in nearby Alpharetta, GA. Deady says he also worked at Kansas City-based Cerner, and that his experience and contacts in the Midwest, Mid-Atlantic, and Southeast regions should complement the inroads that Awarepoint already has at hospitals on the West Coast.
Awarepoint uses Zigbee-based devices that simply plug into electrical outlets to create a wireless mesh sensor network that encompasses an entire hospital or medical center. The network can track the location of patients, healthcare equipment, medical devices, and anything else with a Radio Frequency Identification (RFID) tag.
At Eclipsys, Deady led the company’s go-to-market and “solution delivery” strategies, and his experience in growing bookings, revenue, and earnings appears to be just what the doctor ordered for Awarepoint. The company’s previous CEO, Jason Howe, stepped down about seven months ago as part of a corporate restructuring of the business.
With Awarepoint’s real-time location system installed at hospitals operated by UC San Diego, UC San Francisco, and Kaiser Permanente, Deady says the company has been gaining broader awareness among the decision-makers at major healthcare providers. Still, he says that Awarepoint and its competitors have installed their technologies in only 8 or 9 percent of the overall market. He describes the remaining 91 percent as a growth opportunity for asset tracking, management, and real-time awareness.
As a result, “I think you will see in the near term a modest uptick in field sales and our sales support team,” Deady said. Awarepoint currently has about 80 employees, and Deady said he expects to also add more in software development, services staff, and client support as “we plan for continued growth and expansion.”
In a statement released by the company, Deady says, “I look forward to continuing to develop the company together with all employees at Awarepoint, and to further positioning Awarepoint solutions to help our clients achieve significant outcome improvements in quality, operational efficiency and process improvement.”