Redox Nabs East Coast Money to Develop Plug-and-play Healthcare API
Redox, a Madison, WI-based healthtech startup whose software helps other developers integrate with patient record-keeping systems used at hospitals and clinics, has raised $3.5 million in a Series A funding round from East Coast and local investors, the company announced Tuesday.
The new financing brings the total amount Redox has raised to about $4 million. Boston-based .406 Ventures led the round, and the other participants were Flybridge Capital Partners, which has offices in Boston and New York City, and Madison-based HealthX Ventures.
Devin Soelberg, Redox’s chief customer officer, says it plans to use the money to continue adding customers. Currently, more than 120 software makers have signed up to use the startup’s application programming interface (API), which brokers connections to healthcare organizations’ electronic health records systems. (Redox lists about 20 of them on its website.) Soelberg says the goal is to increase the total to 500 by the end of 2016, and to help those developers link up with medical records systems at 50 different health systems.
“To realize the true promise of digital health information, data must be able to flow seamlessly between [electronic health records] and other applications,” .406 Ventures managing partner Liam Donohue said in a press release announcing the round.
Donohue has joined Redox’s board, which also includes HealthX Ventures managing partner Mark Bakken. Bakken had previously invested some of his own money in Redox, and his new venture fund is located in the same office building as the startup. In a September SEC filing, HealthX said it plans to raise up to $30 million from investors.
Soelberg says most of Redox’s introductions to East Coast investors “have come pretty organically.”
“We were in the fortunate position to be selective on who we decided to work with, and did due diligence on groups we felt would be a good cultural fit,” he says. “.406 brings a successful track record of investments and has a lot of expertise in the healthcare and [information technology] space. Our number one objective was finding investors that were going to accelerate and expand our success.”
In February 2014, Luke Bonney, James Lloyd, and Niko Skievaski—all former employees of Verona, WI-based electronic health records software company Epic Systems, as is Soelberg—founded a healthtech startup incubator called 100health. Later that year, they decided to cut loose six of the companies the incubator had helped form and began devoting their full energies to growing the seventh, Redox.
The company, which currently has 10 employees, intends to grow its software development, “customer success,” and business development departments, though Soelberg says there are no specific hiring targets. While he lives in the Los Angeles area, half of Redox’s staff is based in Madison and the startup is committed to staying there, he says.
To understand how Redox has been able to acquire so many customers over a … Next Page »