Cedar, a developer of end-to-end billing software for hospitals, health systems, and medical groups, closed more than $102 million in Series C funding. The deal includes $77 million in venture capital and $25 million from JP Morgan in venture debt.
Andreessen Horowitz led the venture capital financing round, with participation from the company’s existing investors, including Kinnevik, Thrive Capital, Lakestar, and Founders Fund.
Other participants in the fundraising round include Kaiser Permanente and individual angel investors, including Jerod Mayo (linebacker coach for the New England Patriots) and Jeff Vacirca (MD, FACP, and CEO of New York Cancer & Blood Specialists).
As part of the investment, Scott Kupor, Managing Partner at Andreessen Horowitz, will join the Cedar board of directors.
Founded in 2016, Cedar has raised $157 million to date. The New York-based company plans to use the new funds to further develop its technology and expand to more health systems.
Cedar also announced it has partnered with Novant Health, a North Carolina-based integrated network of physician clinics, outpatient centers, and hospitals. Novant will roll out Cedar’s patient engagement and payment technology platform to modernize the payment experience for its patients.
“The COVID-19 pandemic has put a spotlight on many of the inefficiencies and archaic processes across our current healthcare system which has, in turn, driven an increase in the adoption of platforms like Cedar’s among healthcare providers,” said Florian Otto, CEO, and Co-founder of Cedar.
“Through this round of funding and our new partnership with Novant Health, Cedar’s patient engagement and payment technology platform will be able to offer an improved experience for more patients with simplified and personalized digital engagement strategies and payment support options. We’re very pleased with this strong show of support from our investors and partners and look forward to further enhancing our platform for patients and providers,” Florian Otto further added.
Medical billing software companies have raised over $450 million since 2010, according to Mercom data. Recently, Anagram (formerly Patch), the healthcare billing platform, raised $9.1 million in new financing. The round was led by ManchesterStory, with participation from CareCredit (a Synchrony solution), Waterline Ventures, Rogue Venture Partners, Launchpad Digital Health, KEC Ventures, and Healthy Ventures.