Innovaccer, a health tech startup that aggregates patient data across systems and practices, is in advanced talks with investors to raise up to $250 million in a new funding round. three sources familiar with the matter told TechCrunch.
Considerations for a new funding round are underway, with current discussions suggesting a value of $2.5 billion to $3 billion for the 9-year-old company, the person said, asking not to be identified as the details are private. The person concerned stated that.
Innovaccer has developed a cloud-based software layer that integrates with existing electronic medical record systems used in healthcare facilities. The platform enables the integration and analysis of patient data from various sources, giving healthcare providers a comprehensive view of a patient's health status. By leveraging cloud technology and architecture, Innovaccer aims to increase efficiency and accelerate growth in the healthcare industry, which has been slower to adopt technology than other sectors.
Innovaccer – whose backers include Tiger Global, Mubadala, Lightspeed, Dragoneer, Microsoft’s M12 fund and Steadview Capital – was valued at $3.2 billion in a funding round it disclosed in late 2021. The San Francisco-based startup has raised more funding, with more than $375 million to date.
Discussions are also underway about a secondary deal in which existing backers, employees or founders would sell shares directly to other investors, rather than the startup selling their shares, the people said. Proposed negotiations for a secondary transaction value Innovasser at least $2 billion, the people added.
Healthcare provider Kaiser Permanente is also involved in leading the funding round, which will be split into multiple rounds, one source said. Kaiser Permanente and Innovaccer have a long history. Kaiser is a customer of his Innovaccer and has seen many of the company's executives join the San Francisco-based startup.
Kaiser announced Tuesday that it has deepened its partnership with Innovasser to improve value-based care services for health systems.
A spokesperson for Innovasser denied that the company was raising funds. Kaiser did not respond to requests for comment. A deal could be reached as early as this month, one of the people said.
According to the company's website, Innovaccer has helped consolidate more than 54 million patient records, served 96,000 clinicians, and helped customers save more than $1.5 billion. One source said the startup's ARR as of the end of December was close to $140 million.
Innovaccer operates on a subscription-based business model, charging customers based on the number of patients, subscribed modules, and endpoints. The company's cloud-based platform provides multiple layers of services, including core data, CRM, virtual care, and remote patient care.
It addresses the lack of information interoperability in traditional health systems and differentiates itself by deploying a framework with a common language that brings together data and connects different health systems.