Banjo Health, an AI-driven prior authorization solutions provider for healthcare providers, payers, and patients, raised $5 million in Series A financing led by Epsilon Health Investors, with participation from Spark Growth Ventures and Tau Ventures.
As part of the funding, Epsilon Health Investors Co-Founder and General Partner Gregory Epstein will be joining Banjo Health’s Board of Directors.
With proceeds from the latest round, Banjo Health will accelerate its expansion into new customer segments, including adding health plans to its customer base and provider clients.
Banjo Health brings automation to prior authorization through a suite of workflow tools and AI modules that offer decision support software to allow payors to review prior authorization requests. With its prior authorization software, payors can reduce turnaround time and improve transparency, especially why a PA is being approved or denied, the company said.
“Prior authorization continues to be one of the largest and most complex challenges facing the US healthcare system today. This process is error-prone, highly manual, and is ultimately an administrative burden for both payors and providers. Banjo Health has taken an innovative and sustainable approach to streamline and bring accountability to the prior authorization process. We are thrilled to partner with the Banjo team,” said Gregory Epstein.
According to Banjo Health, prior authorization has become a burdensome process. Delays in time to therapy drive down member experience and increase costs. Delayed medication, particularly across specialty pharmacy can directly impact outcomes, particularly when patients drop out of care or abandon medicines due to prior authorization.
“I am fortunate to have known Saar for five years and been actively involved with Banjo since its founding. I have witnessed the impressive strides Banjo has made in a very short duration to address a large pain point in the US healthcare infrastructure. As Banjo further accelerates its growth efforts, SGV is excited to double down on our partnership and continue enabling the company’s mission of bettering PA,” said Hem Suri, Founder & Managing Partner, Spark Growth Ventures.
Digital Health companies in the first half (1H) of 2021 raised $15 billion in VC funding. Funding activity was up by 138% during 1H 2021, compared to $6.3 billion raised in 1H 2020.