Modernizing Medicine, creator of a cloud-based electronic medical record system for specialized surgical areas, announced Tuesday that it has received $14 million in Series C funding from Summit Partners, a global growth equity investor.
Previous funding rounds for Modernizing Medicine were for $7 million and $8 million, bringing the total funding to date to $29 million. Modernizing Medicine, based in Boca Raton and launched in 2010, now has 140 employees, including 14 practicing doctors on staff. It plans to add another 30 employees before the end of the year and at least another 30 after that, says Daniel Cane, CEO and president.
Modernizing Medicine’s Electronic Medical Assistant, available in an iPad application or from any web-enabled computer, integrates into the healthcare practice's work flow, saving physicians and their staff time and increasing efficiencies, the company says. Modernizing Medicine is strategically focused on providing its EHR solution for the dermatology, ophthalmology, optometry, orthopedics (EMA Orthopedics IPad app shown below) and plastic and cosmetic surgery markets, says Cane, a serial entrepreneur who founded Blackboard.
Funding will be used for expand into new specialty areas –- including ENT (otolarangology) and rheumatology -- and also further developing capabilities with big data. “The first three years of this company were really about delivering the products that the markets wanted and needed to be able to very efficiently document medical records for surgical specialties,” Cane explains in an interview. “But the real mission of Modernizing Medicine is in our namesake… using the data that is generated by those efficient interactions with the system so you can actually improve patient care and patient quality. We have three years of captured data … and we can see statistically what the various treatments are and what the outcomes have been."
Since 1984, Summit Partners has invested in more than 380 companies, mainly in healthcare and technology. Mark deLaar, a managing director with Summit Partners who is joining the Modernizing Medicine’s board, says over the years the fund has made at least half a dozen investments in Florida — including in Pediatrix, Lincare Holdings and MDVIP — “and we’re pretty excited about this one,” citing Modernizing Medicine's strong management team, Cane's previous success disrupting the eduction market with Blackboard and the company's focus on its mission. "It's almost unbelievable what they have done in a short time," adds deLaar.
Modernizing Medicine grew from just under $2 million in revenues in its second year to nearly $10 million in its third, says Cane.
Does Cane (pictured) see similarities in trying to disrupt education and healthcare? "They are different beasts," he explains. "While the education market was huge and resistant to change, it turns out there were very similar problems faced by different universities and different sectors of eduction. It’s a solvable problem. Healthcare is like 100 different verticals rolled into one. By solving the needs of a specific vertical, you really don’t solve all of healthcare’s woes. So rather than focusing on being everything to everyone, we very strategically pick and fix problems within specific verticals.'
This year, Modernizing Medicine was listed at No. 47 on Forbes’ annual ranking of America’s Most Promising Companies. It was also recently recognized by Modern Healthcare as one of the 2013 Best Places to Work in Healthcare, ranked on Florida Trend’s Best Companies To Work For and named South Florida Business Journal’s #1 Fastest Growing Company in South Florida for the second year in a row. "It is because of the passionate group of employees we’ve assembled that we have been able to build the company and scale it the way we have," says Cane.