US-based healthcare data services provider Health Catalyst secured $70m yesterday in an oversubscribed series E round co-led by healthcare and insurance provider UPMC and venture capital firm Norwest Venture Partners (NVP).
The other corporate participants in the round were care providers MultiCare Health System, OSF Healthcare and Partners HealthCare as well as Kaiser Permanente Ventures and CHV Capital, subsidiaries of care consortium Kaiser Permanente and care system Indiana University Health respectively.
Leerink Capital, Sequoia Capital, Sands Capital, Epic Venture Partners, Leavitt Equity Partners and Tenaya Capital also participated in the round.
Health Catalyst provides software that helps healthcare organisations warehouse and analyse data, enabling them to meet clinical, financial and operational data reporting and analysis requirements. In addition to being investors, UPMC, MultiCare and OSF are all customers.
The funding, which Health Catalyst CEO Dan Burton said would likely be its last as a private company, will go to product development.
Tal Heppenstall, president of UPMC’s corporate venturing and commercialisation arm UPMC Enterprises, said: “This investment is a signal of our strong commitment to Health Catalyst, and to our mission of improving healthcare by supporting and developing market-leading companies and innovations.”
Health Catalyst has now raised more than $220m altogether, having received $70m in March 2015 at a $500m valuation from Partners HealthCare, Kaiser Permanente, CHV Capital, NVP, which led the round, Sequoia, Sorenson, Sands Capital, Tenaya, Epic and Leavitt Equity Partners.
Kaiser Permanente, CHV, NVP and Sorenson initially invested as part of a $41m two-tranche series B round in 2013, while Sequoia has been a backer since series A stage.
Dan Burton said: “Amid a very challenging capital environment, we are honoured to have been oversubscribed for this latest round of financing at an increased valuation relative to our most recent round, continuing a trend that we have been fortunate to experience throughout our history.”