US-based healthcare provision network Aledade completed $64m a series C round on Monday that included GV, an early-stage corporate venturing subsidiary of internet and technology conglomerate Alphabet.
Professional body California Medical Association and Echo Health Ventures, the venture capital firm formed by the merger of healthcare provider Cambia Health Solutions’ corporate venturing unit and VC firm Mosaic Health Solutions, also took part in the round.
The round was led by Omers Growth Equity, the growth-stage investment arm of pension fund manager Omers, and also featured VC firm Meritech Capital Partners and investment firm CVF.
Founded in 2014, Aledade runs a network that enables its primary care provider members, including general practices, health centres and clinics, to retain their independence and accountability but receive access to services and technologies such as data analytics, regulatory expertise and guided workflows.
The network approach means members can reduce costs while improving patient care. Aledade’s customer base has grown to more than 7,300 healthcare providers across 27 US states, covering more than 840,000 patients.
The company will put the series C cash towards continued expansion efforts, both through the additional of new partners and by supporting the growth of its existing members.
Aledade has now raised about $175m altogether. It closed a $56.2m funding round in January 2019 backed by Meritech, Venrock and Biomatics Capital. The final $10m tranche was reportedly provided by Echo Health Ventures, identified as a returning investor in the latest round.
GV participated in a $20m series B round for Aledade in 2017 that was led by Biomatics Capital and which included Maryland Venture Fund and existing investors Venrock and Arch Venture Partners.
The company’s shareholders reportedly also include Utimco, the investment management arm of University of Texas.
