Olive, a US-based healthcare management software producer backed by internet and technology group Alphabet, completed a $400m funding round yesterday valuing it at $4bn.
The round was led by investment firm Vista Equity Partners and also featured venture capital firm Base10 Partners’ Advancement Initiative. It took the overall funding raised by the company to $902m.
Founded in 2012 as CrossChx, Olive offers artificial intelligence-powered software which enables hospitals and healthcare providers to automate administrative workflows, monitor their performance and identify ways of increasing efficiency and reducing costs.
The software is used by more than 900 hospitals across 40 US states, and the funding will support company expansion, product development and the broadening of Olive’s customer base. It will also use part of the capital to hire new staff across the country as it aims to double its number of employees by the end of 2021.
Olive plans to partner the Base10 Advancement Initiative to contribute to scholarship and financial aid awards for historically black colleges and universities in the US that will become known as The Olive Scholarship.
The company secured $225m in a December 2020 round led by hedge fund manager Tiger Global Management that included Alphabet subsidiary GV, General Catalyst, Drive Capital, Silicon Valley Bank, Sequoia Capital Global Equities, Dragoneer Investment Group and Transformation Capital Partners.
General Catalyst had led a $51m round for Olive in April 2020 that also featured Ascension Ventures, the venture capital firm backed by 13 health systems including Ascension Health, as well as Drive Capital and Oak HC/FT. Those investors subsequently joined SVB Capital in a $106m round in September.
Olive had previously raised $32.8m in series D funding from investors including Ascension Ventures, Oak HC/FT, Drive Capital and SVB Capital in 2018. Drive Capital, Silicon Valley Bank, Khosla Ventures, NCT Ventures and Moonshots Capital all took part in its $15m series C round two years earlier.