Cohealo, a healthcare technology company founded in South Florida, on Wednesday announced the company has completed a $9 million Series A financing round led by Romulus Capital and Miami-based Krillion Ventures.
Cohealo, now based in Boston, utilizes a cloud-based sharing platform to bring the benefits of the sharing economy most readily associated with consumer applications like Uber, Airbnb and Zipcar to managing and optimizing the utilization of medical equipment across hospitals and care facilities in health systems. The U.S. spends more than $100 billion a year on these assets; Cohealo enables the market to maximize the economic and clinical value out of each and every one of them.
Mark Slaughter, CEO and co-founder, started the company about four years ago while an MBA student at the University of Miami. In January he relocated the company to Boston. “For us, Boston had a really strong focus on healthcare innovation, not just from a customer perpective but also from a talent recruitment perspective," Slaughter said last week. "From investors to executives to engineers, we were spending a lot of time up there and it made sense for us to put down stakes."
The move’s been good, he said. “The healthcare community in Boston has been incredibly supportive. Since being up there, we have been able to hire some phenomenal executive talent and have some phenomenal investors."
But Slaughter also said Cohealo will be opening a new office in Miami in coming months for sales, account management and operations because it has customers from Jacksonville to Miami. “I love the city it is always going to be a very important part of me. When we were in our early stages, the folks in the community were awesome," he said.
Slaughter said Cohealo services 68 hospitals and that number will triple in about four to five months, with the new funding. He said the team numbers about 25 now, but that too will grow.
“We are in talks with many of the largest multi-state health systems in the U.S. for late 2014 / early 2015 deployment. We are on track to dramatically grow the business over the next six months with the most respected and trusted names in healthcare,” said Slaughter.
Romulus Capital, an active investor in the digital health space, and new investor Miami-based Krillion Ventures led the recently completed $9 million Series A financing that also included a number of notable individual investors. The financing was composed of both equity and convertible-note financing and builds upon seed investment from Romulus Capital. Previously Cohealo raised about $3 million, Slaughter said.
The proceeds will be used primarily for adding intellectual capital as the company looks to bring on additional engineers, sales executives and support staff, and further develop the Cohealo Platform.
“Cohealo is bringing the concept of the sharing economy to healthcare at precisely the right time for the industry,” said Krillion Ventures’ Managing Partner Melissa Krinzman, in a statement. “Today, as health systems are being challenged to introduce more efficiency in every area of their business and control capital expenses without compromising on care, facilitating meaningful ROI is essential. We believe that asset utilization is an area of cost savings historically overlooked by hospital administrators, when compared to labor costs and drug spend.”