US-based patient engagement technology provider Phreesia has filed for a $125m initial public offering that would enable corporate venturing units BlueCross BlueShield Venture Partners, Ascension Ventures and Echo Health Ventures to exit.
Phreesia produces software that helps a customer base of some 50,000 hospitals and other care providers such as nurse practitioners manage their intake of patients. It made a $15.1m net loss in the year leading up to the end of January 2019, from $99.9m in revenue.
The company has not earmarked any of the proceeds for strategic investments, but may use some of the cash to pay off a secured term loan or its revolving line of credit, and to pay a dividend to its convertible note holders.
The offering will follow approximately $109m in funding, including $34m in a round that closed in December 2017 according to a securities filing.
Echo Health Ventures, which was formed by hospital manager Cambia Health Solutions with health insurer Blue Cross Blue Shield of North Carolina’s Mosaic Health Solutions vehicle, was among the 2017 investors, as were CHV – backed by care provider Ascension Health’s Ascension Ventures unit – and LLR Equity Capital Partners.
LLR had previously led the company’s $30m series E round in 2014, which included Ascension Ventures and venture capital firm HLM Venture Partners.
Phreesia had already secured $20m in series B funding from Ascension Ventures, BlueCross BlueShield Venture Partners, which represents several BlueCross BlueShield insurers, HLM, VantagePoint Venture Partners, Long River Ventures and Polaris Venture Partners in 2010.
CHV owns 10.8% of Phreesia’s shares while Echo Health Ventures holds 9% and BlueCross BlueShield Venture Partners 7.1%. The company’s largest shareholder is LLR (23.9%), while HLM owns 17.3%, Polaris Venture Partners 14.5% and VantagePoint 7.1%.
JP Morgan Securities, Wells Fargo Securities, William Blair, Allen & Company and Piper Jaffray have been appointed underwriters for the offering.
Image courtesy of Phreesia, Inc.
