Particle Health, a company developing an application program interface (API) that facilitates health data sharing, integration, and compliance between healthcare organizations across the U.S., raised $12 million in Series A funding.
Menlo Ventures led the financing round with participation from existing investors Collaborative Fund, Story Ventures, and Company Ventures. As part of the investment, Greg Yap, Partner at Menlo Ventures, joins the Particle Health board of directors.
Individual angel investors from Flatiron Health, Clover Health, Plaid, Petal, and Hometeam also participated in the financing round.
Seventy-five percent of all the U.S. healthcare provider communications in 2018 was by fax, patient portal scraping or integrating one-by-one across every hospital, clinic, lab, according to the company press release.
“Expectations are changing – people want digital healthcare solutions that connect the apps that they’re already using to the healthcare system at large. They expect a fully digital, real-time experience where they no longer have to fill out piles of paperwork when submitting an insurance claim, they don’t have to call for lab results, and they don’t need to worry that their medical team is waiting on a fax that is critical to their care. Particle is a key piece of that puzzle, by offering developers a place to focus on creating new solutions – not on integrations, contracts, and data standards,” said Particle CEO Troy Bannister.
Founded in December 2017, Particle Health has facilitated over 1.4 million transactions for telemedicine, pharmacy, and virtual health companies, according to the startup. The company is offering its API at no cost to healthcare organizations working on coronavirus efforts.
Sixty healthcare information exchange companies raised over $850 million in VC funding, according to Mercom funding database. Last year, Ciox Health, a provider of healthcare data exchange solutions, raised a $30 million in equity investment from new investor Merck Global Health Innovation Fund (Merck GHIF) and New Mountain Capital.
