Kareo Secures over $55 Million in Investment
New investment will be used to solidify Kareo’s position as the leading provider of cloud-based solutions for small medial practices
Irvine, CA – Kareo, the leading provider of cloud-based solutions for independent medical practices, today announced it has closed $55.4 million in additional funding. This investment is led by Montreux Equity Partners with participation from Silver Lake Waterman and all of Kareo’s existing investors. This capital will finance the continued development of Kareo’s product line—which enables physicians to manage all major aspects of their practice—as well as expand the company’s market access.
“With this new investment from Montreux, Silver Lake Waterman and our current investors, we’ll be able to accelerate the development of our comprehensive, cloud-based, medical office management platform for independent practices,” said Dan Rodrigues, founder and CEO of Kareo. “Concurrently, we will further expand our market reach, helping even greater numbers of physicians meet their care delivery and practice growth objectives.”
Montreux Equity Partners, a growth capital firm investing in high growth, commercial stage companies with category leading products, technologies and services has a history of investing in high-profile healthcare companies including MINDBODY Online (NASDAQ: MB), Glaukos (NYSE: GKOS) and MAKO Surgical (NASDAQ: MAKO, acquired by Stryker), among others. Along with the investment, Montreux Principal, Michael Matly, MD, will join the Kareo Board of Directors and will provide consultative guidance around the company’s market strategy. Dr. Matly brings valued experience in the health services and technology sectors and is actively involved in Montreux’s late stage investments. He previously represented Montreux on the board of MINDBODY Online (NASDAQ: MB) and currently serves on the board of Pure Life Renal. Before joining Montreux, Dr. Matly led Business Development and New Ventures at the Mayo Clinic Center for Innovation.
“We are very excited to invest in Kareo, a company dedicated to helping physicians deliver outstanding patient care without getting bogged down by administrative tasks and external mandates,” said Matly. “Independent practices are the foundation of the US healthcare system, but they have been underserved by technology, often facing the choice of forgoing technology or deploying expensive and cumbersome enterprise solutions. Kareo is changing this.”
Montreux joins Kareo’s top-tier institutional investors, which include OpenView Venture Partners, Greenspring Associates, Stripes Group, Silicon Valley Bank and Western Technology Investments.
Kareo has been recognized as one of the nation’s fastest growing private companies, realizing a 368 percent increase in revenue over the past three years. In 2015, Kareo was named the leading vendor for integrated health records, practice management and physician billing solutions for the third consecutive year by Black Book and was identified by KLAS as a top-three practice management provider for practices with 1-10 physicians. The company serves over 35,000 healthcare professionals caring for 40 million patients and processes over $1 billion in medical claims monthly. In March, Kareo announced its acquisition of DoctorBase, an innovative developer of medical practice marketing and patient engagement solutions, and these solutions are now available to Kareo’s existing customers.
Kareo is the only cloud-based medical office solutions platform purpose-built for small practices. At Kareo, we believe that, with the right tools and support, small practices can do big things. We offer an integrated solution of products and services designed to help physicians get paid faster, find new patients, run their business smarter, and provide better care. Our practice management software, medical billing solution,practice marketing tools and free, award-winning fully certified EHR help more than 30,000 medical providers more efficiently manage the business and clinical sides of their practice. Kareo has received extensive industry recognition, including the Deloitte Technology Fast 500, Inc. 500/5000, Red Herring Top 100 Company, and Black Book #1 Integrated EHR, Practice Management and Billing Vendor. Headquartered in Irvine, California, the Kareo mission is to help providers spend their time focused on patients, not paperwork. For more information, visit www.kareo.com.
About Montreux Equity Partners
Montreux is dedicated to making growth capital investments in category-leading companies with products, technologies and services that are advancing health. Since 1993, Montreux has invested in more than 50 companies including MINDBODY (NASDAQ: MB), Glaukos (NYSE: GKOS), MAKO Surgical (acquired by Stryker), SkinMedica (acquired by Allergan), Renal CarePartners (acquired by Ambulatory Services of America), Great Lakes Health Plan (acquired by United Healthcare), and Orexigen (Nasdaq: OREX). Montreux is based in San Francisco, CA, and is currently investing out of its fifth fund. For more information, visit www.mepvc.com.