New capital supports Kareo’s explosive growth and will be used to expand sales and marketing, enhance product offering, and support partnerships
IRVINE, California – October 6, 2011 – Kareo, Inc., the leading provider of easy and affordable cloud-based practice management and medical billing software for physicians in the United States, announced today the closing of a $10 million equity investment led by Greenspring Associates with participation from OpenView Venture Partners, Western Technology Investment (WTI) and angel investor Travis Kalanick. Kareo will use the new capital to aggressively expand its sales and marketing initiatives targeting small physician practices, enhance its product offering, and support its channel partnerships.
“Kareo is at the forefront of helping physicians transition from clunky and expensive legacy software to intuitive and affordable cloud-based solutions,” said Dan Rodrigues, founder and CEO of Kareo. “We’re excited to use this new investment to capitalize on our growth and help even more physicians discover that Kareo offers them a better way to manage their practice and get paid.”
Over the past three years, Kareo has experienced explosive growth fueled by an affordable cloud-based solution that enables physicians to save time and money while increasing their reimbursement rates. Kareo is already used by thousands of small physician practices that each pay an average $200 per physician per month, and the company is adding hundreds of new paying physicians to the service every month. Kareo has grown by more than 100% a year for the past three years and is generating double-digit millions in annual recurring revenue. The company plans to increase its staff from 71 to more than 100 employees by the end of 2011 as it uses this capital to expand sales, marketing, support, and product teams at its Irvine and Indianapolis offices.
“We’re very excited to invest in Dan and the Kareo team,” said Jim Lim, Partner at Greenspring Associates. “Kareo is achieving impressive revenue growth and offers a solution that hits the sweet spot for small practices. Physicians need simple, elegant solutions that will help them get paid more, reduce administrative costs, and adapt to industry changes in the years ahead, including 5010, ICD-10, increased patient responsibility, and new insurance payment models. We believe Kareo is well positioned to benefit from these changes and capture a significant share of the small practice segment.”
Kareo delivers subscription-based software over the Internet that helps physicians in small practices manage their business and get paid by insurance companies and patients. The service lets medical professionals schedule appointments, verify insurance eligibility, send electronic claims and receive insurance payments, bill patients and collect payments online, manage accounts receivables, store documents, generate reports, integrate with leading electronic health record (EHR) solutions, and more. By delivering a cloud-based solution 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.
The healthcare industry is one of the fastest-growing verticals in the US. The healthcare IT software market is forecast to grow at a compound annual growth rate of more than 30% from 2012 through 2014. The significant growth 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 physician practices, the segment that represents the largest share of the physician market and the backbone of the American health care system.
Kareo is a leading provider of easy and affordable cloud-based practice management and medical billing software to thousands of physicians and hundreds of medical billing companies. Kareo's elegant and quick-to-implement solution enables physicians to save time and money while increasing reimbursements. The service helps medical professionals with the essential tasks of their practice including scheduling, electronic insurance billing, patient billing and online payments, financial reporting, online document storage, electronic health record (EHR) integration, and much more. For more information on Kareo, please visit www.kareo.com.
About Greenspring Associates
Greenspring Associates, founded in 2000, manages five venture capital funds-of-funds with a combined total of over $2.0 billion in committed capital. Investors in these partnerships, which include family offices, corporate pension funds, endowments, foundations and other venture capitalists, are provided access to diversified portfolios of top-tier venture capital funds, such as Benchmark Capital and Kleiner Perkins Caufield & Byers, and also, a select number of high quality, later-stage, direct venture capital investments, in various segments including SaaS companies, such as ExactTarget and AtTask. For more information on Greenspring Associates, please visit www.greenspringassociates.com.