Big data healthcare startup Innovaccer has now joined the ranks of digital health unicorns.
The San Francisco-based company secured $105 million in a series D funding round, bringing its valuation to $1.3 billion. The round was led by Tiger Global Management and existing investors Steadview Capital, Dragoneer, B Capital Group, Mubadala Capital and M12 (Microsoft's venture fund) participated in the round as well as new investor OMERS Growth Equity.
The company has raised $225 million in capital to date, up from $120 million at the end of its series C round.
Innovaccer has grown dramatically since its founding, forecasting a five-year compound annual growth rate of over 100% by the end of 2021, with growth across provider, payer and life sciences sectors all accelerating, the company said.
In 2020, Innovaccer accelerated customer and user growth, adding Dignity Health, Cancer Treatment Centers of America, Embright, Valley Integrated Provider Network and Lee Health as new customers.
Fueled by the cash infusion, the startup plans to launch a new cloud platform service that combines the company’s data activation technology and application suite with a set of platform services and tools that allow customers to easily develop interoperable applications that improve patient outcomes and lower costs, the company said.
Founded in 2014, Innovaccer unifies patient records and leverages artificial intelligence and analytics to automate routine workflows and facilitate whole-person care. Its solutions have been deployed across more than 1,000 locations in the U.S., enabling more than 37,000 providers to transform care delivery and work collaboratively with payers, employers and life sciences companies.
By using the connected care framework, Innovaccer has helped healthcare organizations unify records for more than 24 million people and generate more than $600 million in savings for the healthcare ecosystem, the company said.
“Healthcare is at the brink of a massive transformation. Over the last ten years, we have spent billions of dollars digitizing healthcare information with great success,” said Abhinav Shashank, co-founder and CEO of Innovaccer, in a statement. “That was step number one of the journey. Now, we have troves of information on our health locked in electronic silos. We need to bring this information together using a cloud platform that not only unlocks the power of the data, but also provides a platform on which new digital services and solutions can be built with native interoperability. This is exactly what Innovaccer is doing with the launch of Innovaccer Health Cloud.”
Banner Health, Elevate, Physicians of Southwest Washington and Ora Oncology are using Innovaccer's cloud technology to scale up connected care.
"The Innovaccer Health Cloud creates the connective fabric for our overall digital transformation strategy,” said Julie Smith, vice president of clinical applications at Banner Health. “We are using the Innovaccer Health Cloud to unify patient data across multiple systems, simplify workflows across teams, and support our population health management strategy for more than one million lives. With Innovaccer’s solution, we are not only transforming patient care, but also driving significant savings in our IT operating expenses.”
Organizations across healthcare need a cloud-based platform that can unlock the value of the significant investments made in legacy healthcare IT.
"Innovaccer is poised to capture a disproportionate share of spending as customers leverage its platform to unify the patient experience, move more of their IT to the cloud, and focus on orchestrating improved clinical and business processes," said John Curtius, partner at Tiger Global. “Innovaccer stands to become a meaningful beneficiary of the generational architectural shift taking place in healthcare information technology.