OpenView Partners Backs Prognosis Health Information Systems
Growth equity and venture investor OpenView Venture Partners is investing in the health-care information technology space, committing funding to Prognosis Health Information Systems Inc.
The firm typically invests $7 million to $9 million per deal, according to George Roberts, a partner at OpenView.
OpenView had been looking in the health-care space for the last several years, according to Roberts, who said the firm sources the majority of its deals itself. The government is creating different incentives, aggressively pushing hospitals to move to electronic systems, Roberts said. He likened the process to Y2K – except a mandatory one you’re paid to undergo, he said.
Traditional vendors in the space have older technology platforms with outdated codes, poor user interface and inflexible systems, according to Roberts. The implementation time for Prognosis systems takes six to seven months from start to finish, which is significantly less than other vendors, he added. The company serves the lower end of the hospital space, catering to facilities with 200 beds and under. It expects to add four times as many hospitals to its customer base in the next year.
OpenView typically invests in companies with $2 million to $20 million in revenue to year. The firm closed OpenView Partners Fund I at $106 million in 2006. That vehicle is less than 75% invested, according to Roberts. Fund II closed at $131 million in August 2008.