Practice Management Solution Companies Raised $753 Million in the First Half of 2021

Healthcare Practice Management Solutions companies raised $753 million in venture capital in the first half (1H) of 2021, compared to $233 million in 1H 2020, a 223% increase year-over-year (YoY), according to the latest Mercom Digital Health Funding and M&A Report.

MercomThe top funding deal in the Practice Management Solutions category of digital health in 1H 2021 was the $183 million raised by AlayaCare, an AI-powered home health care software provider. Generation Investment Management led the round with Klass Capital and existing investors Inovia Capital, CDPQ, and Investissement Qu├ębec. Including the latest funding round, AlayaCare has raised over $230 million to date.

Care coordination software provider Unite Us closed a $150 million Series C funding round at a $1.6 billion valuation. Iconiq Growth led the round with Emerson Collective, Optum Ventures, Transformation Capital, Define Ventures, Salesforce Ventures, Town Hall Ventures, and other healthcare partners. Unite Us has raised over $200 million to date, including the latest funding round.

Other Large Practice Management Solutions Funding Rounds in 1H 2021

Florence, a workflow management platform for clinical trials, closed an $80 million Series C funding round led by Insight Partners.

Existing investors Fulcrum Equity Partners, Bee Partners, and Flashpoint also joined this round. Including the latest funding round, Florence has raised over $100 million to date.

Viz.ai, an AI-powered digital care coordination platform, raised $71 million in Series C funding. The funding round was led by Scale Venture Partners and Insight Partners with participation from Greenoaks, Kleiner Perkins, Threshold Ventures, CRV, Innovation Endeavors, and Susa Ventures. Including the latest funding round, Viz.ai has raised over $150 million to date.

Novocardia, a provider of practice management solutions for cardiologists, raised $54 million in a Series A funding round led by Deerfield Management Company.

Qualio, a practice management solution provider, raised $50 million in a Series B funding round led by Tiger Global. Menlo Ventures also joined this round alongside existing investors Frontline Ventures, MHS Capital, Operator Partners, Sorenson Ventures, and Storm Ventures. Including the latest funding round, Qualio has raised over $61 million to date.

Practice Management Solution companies have raised nearly $4 billion since 2010, according to Mercom funding data.


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