US-based healthcare billing software developer Cedar raised $102m in a series C round yesterday that included integrated managed care consortium Kaiser Permanente.
Venture capital firm Andreessen Horowitz led the round, which was also backed by Kinnevik, Thrive Capital, Lakestar and Founders Fund. The $102m figure includes $25m in venture debt supplied by financial services firm JP Morgan.
Cedar has built a patient engagement platform that provides personalised insights into medical bills, tailored messaging to increase the likelihood of payment and the ability to set up healthcare payment plans.
The service also alerts patients if their insurer does not cover a visit and helps them resolve the issue, for example by updating their policy or allowing them to pay the balance directly.
The series C proceeds have been allocated to growing Cedar’s market reach and accelerating product development. It has formed a partnership with health system Novant Health to bring its offering to the latter’s patients.
Scott Kupor, managing partner at Andreessen Horowitz, will join Cedar’s board of directors in connection with the round, which it said brought its total funding to $157m.
Kinnevik led the company’s $36m series B round in June 2018, participating alongside Founders Fund, Thrive Capital, Lakestar, Sound Ventures and private investors Kevin Systrom and Nat Turner. It had received $14m in series A financing from Founders Fund, Thrive Capital, Martin Ventures and SV Angel the year before.
