Kareo, Inc. said it raised $20.5 million from Stripes Group and from existing investor Western Technology Investments. The new funding brings Kareo’s total financing to more than $38 million
Kareo Raises $20.5 Million to Fuel Rapid Growth
New capital will be used to introduce new billing services solution for small medical practices while expanding sales and marketing
IRVINE, CA – January 22, 2013 – Kareo, Inc., the cloud-based medical office software provider for small medical practices, announced today the closing of a new $20.5 million equity investment led by Stripes Group with participation from existing Kareo investor Western Technology Investments. This new funding is in addition to the $18 million previously raised, bringing Kareo’s total funding to more than $38 million. Kareo will use the new capital to launch Kareo Billing Services, a technology-enabled revenue cycle management solution for small medical practices, and is extending its market reach and leadership position through new investment in sales and marketing.
“This latest investment is another key milestone for Kareo and our efforts to deliver intuitive and affordable medical office software and services to our small practice customers. We welcome Stripes Group to Kareo’s investor base and Ken Fox, managing partner of Stripes Group, to Kareo’s Board of Directors,” said Dan Rodrigues, founder and CEO of Kareo. “We are looking forward to working with Stripes Group alongside our existing investors as we pursue the next exciting phase of Kareo’s growth.”
Kareo’s latest fundraising marks the close of a record-breaking 2012 for the company, during which time Kareo doubled revenue and its employee base while surpassing 6,000 customers representing over 16,000 providers.
“Stripes Group was attracted by Kareo’s unparalleled track record at building and deploying cloud-based software into the small practice medical market. The company’s growth rate over the last few years has been phenomenal and is a testament to the strength of Kareo’s ability to execute in an area where many have failed,” said Fox. “We have considerable confidence in Dan and his team and are proud to be part of an amazing company and its ongoing efforts to help small practices thrive and prosper.”
Small medical practices are known for creating intimate, long-standing patient relationships that focus on a continuum of care. Kareo enables physicians and administrative staff to streamline office management by simplifying billing, scheduling and recordkeeping. By easing the administrative burden faced by small practices, Kareo enables physicians and their staff to increase their focus on patient care.
Kareo Billing Services
Responding to market demands for improved billing services for small medical practices, the company has launched Kareo Billing Services. Kareo’s convenient front-office tools are now combined with a dedicated team of medical billing experts whose sole purpose is to help medical offices get paid for the important services they provide. Unlike traditional approaches, Kareo’s model brings the ultimate flexibility, giving physicians the options to choose a full-service plan, software only plans, or migrate between the plans as the needs of the practice change.
“With all the pressures of running a medical practice today, our customers need companies who will adapt with them,” said Rodrigues. “When practices have staff and expertise to do their own billing, then our software is perfect for them. When they face challenges and need our billing help, then our people are ready to step in.”
To ensure a seamless transition to Kareo Billing Services, Kareo has developed a Customer Success Program through which it works closely with customers to learn existing processes while establishing a plan to optimize these processes by leveraging
Kareo’s cloud-based software and billing services team. Practice optimization can take the form of electronic claim form submission enrollment, establishing standard fee schedules, logging payer specific contract rates, setting up appointment schedules, and mapping workflows from any integrated electronic health record applications. Following the rollout of Kareo’s Billing Services solution, small practices often experience significant improvements in billing collection rates and timing as well as the benefits derived from eliminating the complexity and hassles of directly managing the billing process with insurance companies and patients. This is another way Kareo helps small practices reduce administrative burdens while shifting focus to their core mission of patient care.
Kareo Medical Billing Partner Program
Kareo also announced the creation of the Kareo Medical Billing Partner Program. This new program is targeted at the more than 600 billing companies that use Kareo’s Practice Management software today; one of the largest established billing company networks in the U.S. Medical billing companies can take advantage of new Kareo benefits and support designed to help them grow their businesses and deepen their relationships with their customers.
By offering Kareo Billing Services and the extensive choices available through Kareo’s Medical Billing Partner Program network, small practices will have multiple ways to address their unique needs – such as specialty expertise, advisory services, and local presence.
Both the Kareo Billing Services and the Kareo Medical Billing Partner Program are currently available in the U.S. For more information please visit www.kareo.com.
Kareo is the only medical office software and services provider dedicated to serving the small practice. Kareo believes that, with the right tools and support, small practices can do big things. Over 16,000 medical professionals count on Kareo to manage their offices intuitively and affordably. Quick to set up and simple to use, Kareo’s cloud-based software helps doctors get paid faster, keep cash flowing, and see the financial big picture through medical billing and practice management tools. Founded in 2004, Kareo’s mission is to free doctors’ hands for important work of patient care. For more information on Kareo, visit www.kareo.com.
About Stripes Group
Stripes Group is an entrepreneurial growth equity firm that makes $10 million to $100 million minority and majority investments in Internet, SaaS, Healthcare IT and branded consumer products businesses. Stripes was founded by entrepreneurs to be a resource for successful entrepreneurs. We invest in rapidly growing businesses that are market share leaders with proven business models and annual revenues in excess of $15 million. Visit www.stripesgroup.com to learn more.