New capital supports Kareo’s growth and leadership position in the medical billing software space and will be used to enhance customer service, expand sales and marketing, and bolster management team
IRVINE, California – September 13, 2010 – Kareo, Inc., the leading provider of easy and affordable web-based medical billing software for physicians in the United States, announced today the closing of an investment by Boston venture capital firm OpenView Venture Partners. OpenView’s recent investment of growth capital together with its earlier stock purchase from a prior investor brings OpenView’s total investment to $9.5 million. Kareo will use the new capital to enhance customer service, expand its product suite, build out sales and marketing initiatives, and bolster its management team. In connection with the investment, Adam Marcus, a Principal at OpenView Venture Partners, has joined Kareo’s Board of Directors.
“Kareo is growing quickly because we offer a solution that makes it remarkably easy for physicians in small medical practices to run their business and get paid by insurance companies and patients,” said Dan Rodrigues, founder and CEO of Kareo. “We’re very excited to use the new investment from OpenView to further enhance our customers’ experience, expand our product offering and bolster our management team in order to support our rapid growth.”
Trusted by thousands of doctors, Kareo provides subscription-based software over the Internet that helps physicians in small medical practices run their business and get paid by insurance companies and patients. Popular with small medical practices and medical billing companies of all sizes, Kareo’s application lets users schedule appointments, verify insurance eligibility, send electronic claims and receive insurance payments, bill patients, manage accounts receivables, store documents, generate reports and more. By delivering web-based software that is remarkably easy to buy, learn and use, Kareo eliminates the headaches of medical billing so physicians can spend less time running their business and more time caring for patients.
“We’re very excited to partner with Dan and his team,” said Adam Marcus, Principal at OpenView Venture Partners. “Kareo is profitable, growing rapidly and offers a solution that hits the sweet spot for small medical offices. Providers want an easy-to-use product that significantly increases reimbursements while dramatically cutting down on administrative costs. We are very bullish on Kareo’s ability to provide a simple, yet elegant solution that will capture a significant share of the small practice segment.”
The healthcare industry is one of the fastest-growing verticals in the US. In 2009, healthcare made up 4.6% of all US IT spending. The significant growth year over year is being driven by demographic trends and technology innovations that are helping doctors cope with declining insurance reimbursements, greater patient responsibility and the increased role of government in healthcare. Kareo seeks to capitalize on these opportunities with a solution that increases reimbursements and cuts administrative costs for small medical offices, the segment that represents the backbone of the American health care system.
Kareo is a leading provider of easy to use, affordable, web-based practice management and medical billing software to thousands of physicians and hundreds of medical billing companies. Kareo's user-friendly and quick-to-implement solution enables physicians to get paid faster by storing patient records, verifying insurance eligibility, submitting electronic claims to insurers, posting electronic insurance payments, billing patients, managing accounts receivable, and much more. For more information on Kareo, please visit www.kareo.com.
About OpenView Venture Partners
OpenView Venture Partners is an expansion stage venture capital fund with a focus on high-growth software, internet, and technology-enabled companies. Through its staff of seasoned operating executives, who collectively bring several decades of technology and management experience to the firm, OpenView is able to help portfolio companies with quickly ramping up sales, marketing and product development functions to best practice levels. The firm was founded in 2006 and has a total capital under management of approximately $240 million. OpenView Venture Partners is based in Boston and invests on a worldwide basis. For more information on OpenView Venture Partners, please visit www.openviewpartners.com.