Cardinal Analytx Solutions, a US-based developer of healthcare data analysis software, completed a $23m series B round featuring health insurers GuideWell Mutual Holding Corporation, Blue Shield California and Premera Blue Cross yesterday.
The round was led by John Doerr, chairman of venture capital firm Kleiner Perkins, and he has taken a seat on Cardinal Analytx’s board of directors in connection with the funding.
Spun out of Stanford University’s StartX accelerator, Cardinal Analytx has built a platform that utilises machine learning to more comprehensively predict and assess healthcare costs, intervening early in situations likely to result in higher costs later on.
Linda T. Hand, Cardinal Analytx’s chief executive, said: “The new growth funding positions us to capitalise on our early commercial traction and robust pipeline. We expect to quickly extend our leadership in the use of AI to accurately predict rising risk and future costs, and deliver actionable insights.”
Cardinal Analytx was formed by Stanford professors Arnie Milstein and Nigam Shah in partnership with healthcare investment firm Cardinal Partners, which led a $6.1m series A round for the company in late 2017 that included Premera Blue Cross and StartX.
Premera Blue Cross CEO Jeff Roe said: “We were an early investor and continue to invest and co-design with Cardinal Analytx because the AI and predictive analytics that they offer enable us to deliver better health outcomes for our customers, while lowering the total cost of care.”
