Practice Fusion, the nation’s largest and fastest-growing healthcare platform, today announced a $70 million Series D financing round. Led by Kleiner Perkins Caufield & Byers (KPCB) and institutional investors OrbiMed Advisors, Deerfield Management Company and Industry Ventures, with participation by its previous venture capital investors including Artis Ventures, the new funding brings the company’s total capital raise to $134 million at an estimated $700 million valuation. The additional funding will help Practice Fusion maintain its Meaningful Use compliant EHR expand its offerings to patients and power new clinical data research and development.
Gearing Up for IPO
VentureBeat reported that the startup is “positioning” itself for IPO. CEO Ryan Howard stated, “We think this is the most the most viable health tech company for the IPO market, and we’re starting to eye it and prepare for it” Howard initially planned to raise $60 million saying the round was “oversubscribed.”
Evolving Business Model
The payoff could be substantial with the the population health management market predicted to exceed $60 billion by 2025. The company has also facilitated over one million lab transactions and 2.7 million prescriptions in the past month through its APIs. The industry is projected to grow to $26 billion by 2017.
With the recent acquisition of 100Plus for an undisclosed sum earlier this year, the company is planning to develop new opportunities big data that will drive revenue. Practice Fusion reported significant revenue growth, increasing 300 percent from 2012.