Pharmaceutical firm Merck’s Global Health Innovation Fund backed an oversubscribed $25m series C round closed by US-based healthcare IT company ClearData yesterday.
The round was co-led by venture capital firms Heritage Group, HLM Venture Partners and Flare Capital Partners, and also featured Norwest Venture Partners, a VC affiliate of financial services provider Wells Fargo, and VC firm Excel Venture Management.
ClearData’s cloud infrastructure technology enables healthcare companies to use the cloud securely. The series C funding will be used to support continued growth which ClearData said has involved a 100% year-on-year revenue increase for the past four years.
Merck Global Health Innovation Fund previously contributed to ClearData’s $14m series B round in 2013, after Norwest and Excel had provided the round’s initial tranche of $7m earlier in the year.
Norwest reportedly also invested in ClearData’s series A round, though the company has not disclosed further details. According to regulatory filings, the company received approximately $30,000 across three rounds from 2011 to 2012.
Darin Brannan, chief executive of ClearData, said: “Security breaches, Health Insurance Portability and Accountability Act and compliance regulations, and data itself are amassing at levels that quickly outgrow the average existing health IT infrastructure.
“Healthcare organisations recognize the need for a purpose-built healthcare exclusive provider to properly address these issues – and so do investors. We are excited to continue our momentum in the healthcare cloud market, which this new funding further accelerates.”