San Francisco-based Practice Fusion has closed on $6 million in new funding, bringing the total raised by the company to $36 million. Investors include Western Technology Investment and angel investor Scott Banister. The company is also backed by Founders Fund, Artis Capital Management, Morgenthaler Ventures, Felicis Ventures and Glynn Capital Management. Practice Fusion provides a free, web-based Electronic Medical Record system to physicians.
Practice Fusion, the fastest growing EMR and healthcare community, today announced over $6 million in funding with several new investors, including Western Technology Investment (WTI) and Scott Banister, to further fuel the company’s rapid growth. Building on earlier funding led by Founders Fund, Artis Capital Management, Morgenthaler Ventures, Felicis Ventures and Glynn Capital Management, Practice Fusion has passed $36 million in total funding.
“We had an enviable opportunity to get involved at this stage as Practice Fusion continues to establish itself as a leader in the healthcare technology space,” said Maurice Werdegar, Investment Partner at Western Technology Investment and early investor in Facebook. “WTI is investing in an outstanding management team tackling big issues. Practice Fusion could not be better positioned in the market.”
In the competitive Electronic Medical Record sector, Practice Fusion dominates with over 100,000 users serving more than 20 million patients through its free web-based EMR software. The company announced last week that a forecasted 5,000 eligible medical professionals are using the software to qualify for up to $90 million in 2011 federal technology incentives. Excitement continues to grow in the market; investor Auren Hoffman said that “Practice Fusion is Silicon Valley’s answer to fixing the multi-trillion dollar health care industry.”
“Practice Fusion has an unfair advantage in making Electronic Medical Records accessible for all doctors, regardless of practice size or budget,” said Ryan Howard, CEO and Founder of Practice Fusion. “Not only do we remove the cost barriers to technology adoption for doctors, we also help them pocket $44,000 or more in EMR incentives. “
“Investors are looking to back a clear leader in the booming health tech sector,” said Jason Portnoy, CFO of Practice Fusion. “Practice Fusion is fortunate to have these world class partners assembling with a commitment to creating the largest, most efficient healthcare platform in the world. We are thankful to have such a supportive and visionary investor base.”
Investors involved in this financing:
· Founders Fund
· Morgenthaler Ventures
· Western Technology Investment
· Scott Banister, angel investor, former Vice President of Ideas at Idealab and co-founder of IronPort Systems
· Glynn Capital Management
· SV Angel, a venture capital fund co-founded by Ron Conway and David Lee
· Auren Hoffman, CEO of Rapleaf
· Hadi and Ali Partovi, angel investors and co-founders of iLike and Tellme
· Peter Loftsgordon, angel investor and solar technology innovator
· Mike McCarthy, Chief Legal and Administrative Officer at Infinera Corporation
“I see Practice Fusion becoming the core platform for human health in the US. That’s a huge opportunity and responsibility, but this team can do it,” said Scott Banister, angel investor, former Vice President of Ideas at Idealab and co-founder of IronPort Systems.
“We are always looking for companies that are developing innovative ways to solve big problems; Practice Fusion is one of those companies,” said David Glynn, Managing Director at Glynn Capital Management. “With this investment, we will be working with very sharp and seasoned team that we believe will continue to drive growth and innovation.”
“Practice Fusion is driving change in the health sector, a sector that has been behind the technology curve,” said David Lee, Partner at SV Angel. “By providing a product that allows physicians to go digital, easily and for free, they are doing something very unique and we are excited to be a part of this.”
“Having first invested in Practice Fusion in 2009, when there were just a few employees, it’s been a thrill to watch the company grow so rapidly and emerge as the EMR leader,” said Mark Goines, Partner at Morgenthaler Ventures. “The team excels at listening to their customers and partners and incorporating feedback in ways that continue to delight. They are pulling away from the competition.”
“Practice Fusion has the team, the technology and even the customer traction to revolutionize health and medicine,” said Hadi Partovi co-founder of iLike, Tellme and angel investor. “They make great things possible by bringing digital technology to clinics both big and small.”
“Practice Fusion is modernizing the medical field,” said Peter Loftsgordon, angel investor and solar technology innovator. “The team’s visions is clear, I’m looking forward to being a part of reaching that vision.”
“I am excited to invest in Practice Fusion and believe that we have a unique opportunity to modernize the collection, storage and analysis of health records,” said Mike McCarthy, Chief Legal and Administrative Officer at Infinera Corporation. “Practice Fusion is the catalyst that will enable the 90 percent of US doctors who are still using paper health records to modernize; leading to more efficiency, enabling greater access to patient information and empowering doctors to take the best care of patients.”
About Practice Fusion
Practice Fusion provides a free, web-based Electronic Medical Record (EMR) system to physicians. With charting, scheduling, e-prescribing, billing, lab integrations, referral letters, Meaningful Use certification, unlimited support and a Personal Health Record for patients, Practice Fusion’s EMR addresses the complex needs of today’s healthcare providers and disrupts the health IT status quo. Practice Fusion is the fastest growing EMR community in the country with more than 100,000 users serving 20 million patients. The company closed a $23 million Series B round of financing led by Founders Fund in April 2011.