Frontier Capital has invested $30 million in HealthiestYou. Based in Scottsdale, Arizona, HealthiestYou is a telehealth company that helps employees reduce their healthcare expenses.
CHARLOTTE, N.C.—Nov. 12, 2015—Frontier Capital, a growth equity firm focused exclusively on software and technology-enabled business services companies, today announced a $30 million growth investment in HealthiestYou.
Based in Scottsdale, Arizona, HealthiestYou provides a technology-enabled health and wellness solution centered on telehealth engagement to more than 4,000 employer groups throughout the United States. HealthiestYou’s platform helps employers and health plans reduce their healthcare expenses by redirecting member claims to lower-cost settings. The web-based and mobile application enables employees to conveniently manage their healthcare needs 24/7, within the framework of their employer-provided benefits and with the most cost-effective options. Key features include telehealth—around-the-clock virtual access to providers from any location; cost transparency tools; geographic provider searches with reviews; insurance connectivity; and wellness engagement.
“HealthiestYou sits at the sweet spot where healthcare technology and human resources management intersect,” said Andrew Lindner, managing partner, Frontier Capital. “Individuals participating in employer-sponsored health plans are increasingly being asked to take greater responsibility for their healthcare decisions. Solutions like HealthiestYou enable these individuals to navigate the health system in a more cost efficient and convenient manner.”
HealthiestYou CEO Jim Prendergast remarked, “The capital injection from Frontier, combined with the firm’s strategic support, gives us the additional resources we need to strategically expand HealthiestYou’s solutions in the largely untapped and rapidly growing telehealth market. The time is right for innovation to rise to the challenge and help both employers and employees reduce costs while improving access to quality healthcare.”
HealthiestYou will use the new funds to:
· Invest in more aggressive sales and marketing efforts,
· Continue to enhance its technology platform and
· Expand its executive team to help capture an increased share of the large and rapidly growing telehealth market.
Frontier’s investment in HealthiestYou is its fourth investment from the $390 million Fund IV announced in March. It is also the firm’s first investment in an Arizona-based company.
“Like many of the other markets where Frontier is active, Arizona has an attractive cluster of growth-oriented technology companies, but is relatively underserved from a growth capital perspective,” Lindner said.
About Frontier Capital
Frontier Capital is a Charlotte-based growth equity firm focused exclusively on software and technology-enabled business services companies. Founded in 1999, Frontier partners with management teams that can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity. The firm makes minority and majority equity investments in high growth companies and has built an excellent track record of delivering returns to both investors and management partners. For more information, please visit frontiercapital.com.