This article was originally published in the Philadelphia Business Journal.
Philadelphia-based HealthVerity raised $25 million in a Series C round, the data-focused digital health startup announced Wednesday.
The new funding comes after an initial $7.1 million Series A in 2016 and $10.1 million Series B in 2017, bringing its total venture capital funding to $42.3 million.
HealthVerity, which was founded in 2014, creates cloud-based software-as-a-service platforms that give pharmaceutical companies, payers and other health care organizations the ability to access and manage health care and consumer data in a way that doesn’t violate privacy laws.
Existing investor Foresite Capital, which is based in New York and San Francisco, led the Series C round. It was joined by Boston-based Flare Capital Partners and New York-based Greycroft, among other existing investors. Foresite Capital CEO and Managing Director Jim Tananbaum will join the board as part of the investment.
“The widespread digitization of medical records offers one of the best opportunities to transform patient care and improve the lives of millions,” Tananbaum said in a statement. “By building technologies that solve long standing challenges in the way that data can be organized, linked and licensed, HealthVerity has significantly enhanced the insights available on the patients and members of its valued customers. We are excited to support HealthVerity’s next phase of growth.”
HealthVerity’s Marketplace product allows customers to discover and license data on 300 million patients across 50 data providers, while its Census product helps enterprise organizations better manage their own data in such as way that it de-identifies patients, consolidates datasets and enables it to be linked across an organization. Its blockchain-based product, Consent, is designed to consolidate all of a patient’s data consent permissions, and Cipher is a platform that blends consumer spending habits with health care data to better understand patient behavior.
The company states its customer base includes more than 100 top pharmaceutical manufacturers, health insurance payers, pharmaceutical service firms and health care service organizations.
With the recent funding, HealthVerity plans to invest in and “rapidly grow” its engineering and go-to-market teams, COO Andrew Goldberg said in email, with the goal of expanding both its customer base and broader health care and consumer data provider ecosystem.
“Our Series C financing is a tremendous vote of confidence in our data interoperability and privacy management technologies and further proof that Philadelphia is a true epicenter for healthcare innovation,” he said.
In a statement, CEO Andrew Kress — who led Plymouth Meeting-based health care analytics company SDI Health through its sale to IMS Health in 2011 — said HealthVerity’s “broad interoperability” has had a positive impact across its ecosystem of data partners, and that the company is “now uniquely equipped to deploy software solutions that more efficiently manage and govern data in accordance with an ever-changing regulatory environment.”