Health tech company H1 picked up an additional $33 million in funding after securing a hefty $100 million series C round just six months ago.
“In a time of volatile markets when many are struggling to secure funding, this extension is a vote of confidence in our ability to advance our mission. Our ability to raise capital at the same terms as our original series C close is a testament to our significant market opportunity and ability to execute against it," said Ariel Katz, CEO and co-founder of H1.
The series C extension includes $23 million in equity financing and $10 million in debt financing, Katz told Fierce Healthcare. The new funding came from Goldman Sachs Asset Management, Menlo Ventures and Transformation Capital, which also invested in the first tranche of the round as well. Novartis Pharma AG also invested in the series C extension. The company has raised around $200 million to date.
The extension enables H1’s valuation of $773 million to stay constant and extends the company's runway, executives said.
In the past year, H1 acquired two companies and grew from 10 employees two years ago to more than 600 globally.
"Since we raised our series C, we've basically grown over 50% in less than two quarters," Katz said.
Katz and Ian Sax founded H1 based on the idea of developing a platform to connect healthcare professionals to help pharmaceutical, biotech and medical device companies develop drugs and devices.
H1 graduated from Y Combinator in January 2020 as a bootstrapped company under ten employees, and in less than a year had closed on $70 million in total financing and employed more than 200 people.
The company has developed a massive digital professional database and data analytics platform that connects healthcare professionals and life science companies. It basically serves as a LinkedIn for the pharmaceutical and biotech industries.
H1 supports more than 250 customers including top pharmaceutical companies, and as of Q1 2022, the company’s annual recurring revenue increased by approximately 140%, according to executives.
The company is on pace to double its revenue in 2022, Katz said.
The company just picked up $100 million back in November to expand its data and network as well as its product development and hiring, with a goal to make H1 the core global healthcare network for every medical professional and organization in the world, according to the company.
While biotech stocks have taken a hit and health systems are getting hit hard by inflation and high expenses, the pharmaceutical and insurance markets are going strong, which helps to fuel H1's robust growth, Katz noted.
"We are well on pace to hit or exceed our numbers this year. We don't see that slowing down. The economic macros are not affecting the micros today with our company.
H1 also is hitting on the pulse on what's important in healthcare, Katz said, by "democratizing access" to expertise, research and insights.
"Having access to the right information to understand your health and everything around it is a basic human right. We are democratizing access to that information across the healthcare ecosystem," he noted.
The company also a long-term goal to use the data it's collecting to improve equity in the healthcare system and advance diversity in clinical trials, which is a key priority for pharmaceutical companies, Katz said.
The company's Connect platform combines data science and technology to synthesize billions of data points, including data on over ten million healthcare providers, 20,000 institutions, 25 million peer-reviewed publications, 420,000 clinical trials, two billion procedures, three billion diagnoses and over nine million global claims.
In July 2021, H1 acquired Carevoyance based in Oregon, extending its reach into medical devices, and, most recently in February 2022, acquired London-based Faculty Opinions to broaden its global doctor network.
The company has set its sights on making H1 the core global healthcare network for every medical professional and organization in the world and want to power more than 100 million patient doctor visits by 2024, along with 50% of the clinical trials worldwide, Katz said.