The Venture Codex

Participated · Equity · Sep 2009

Medsphere offers a suite of healthcare IT products including CareVue (an integrated inpatient EHR), RCM Cloud (end-to-end revenue cycle management), and the ChartLogic ambulatory suite, plus services through Phoenix Health Systems and a Government Services division. Its products target a wide range of providers— inpatient and ambulatory facilities, behavioral health hospitals, specialty clinics and multi-facility systems—regardless of size or budget. The company has grown subscription revenue by over 400 percent in the past four years, achieving a compounded annual growth rate of over 50 percent. Medsphere emphasizes responsive customer service to attract new clients and sell incremental products to its existing base. With the new capital, the company plans to support continued organic growth and pursue opportunistic strategic acquisitions. Medsphere was founded in 2002 and is based in Carlsbad, Calif. Medsphere Systems Corporation, founded in 2002 and based in Carlsbad, Calif., provides affordable, interoperable healthcare IT solutions and services for inpatient and ambulatory facilities. Its core product suite includes the CareVue EHR for inpatient facilities, ChartLogic for clinics, and RCM Cloud for revenue and back-office management, complemented by vendor-independent consulting and IT services through its Phoenix Health Systems division. Medsphere delivers its solutions via a subscription-based, cloud-capable model intended to reduce financial and technological burdens for hospitals, clinics, behavioral health facilities, and multi-facility systems. The company reported subscription revenue grew 46 percent in 2017 and said it was on track for significant growth in the current year. Medsphere plans to use new financing to support accelerating demand, pursue strategic acquisitions, hire additional team members, and further develop and deploy its solutions. Medsphere develops affordable, interoperable healthcare IT products centered on its CareVue electronic health record platform and related services. In 2017 the company launched CareVue Cloud to offer remote hosting and eliminated the need for onsite hardware and data centers. Medsphere acquired Stockell Healthcare Systems in 2017, adding full revenue cycle, billing and patient accounting capabilities to its CareVue offering. The company reported a 45% increase in subscription revenue for 2017 following a 48% revenue growth rate in 2016, and has expanded financial support and its client base to meet demand. Other company divisions include ChartLogic (ambulatory EHR and RCM), Phoenix Health Systems (IT consulting and outsourcing) and a Government Services division applying VA VistA expertise. CareVue achieved 2015 Edition ONC Certification, and Phoenix Health Systems was recognized by Black Book Research as the top firm for comprehensive hospital IT outsourcing. Medsphere Systems Corporation provides affordable and interoperable electronic health record (EHR) solutions, primarily through its OpenVista portfolio. OpenVista leverages the Department of Veterans Affairs' VistA EHR and targets acute and behavioral health hospitals, clinics, and physician practices. The company says OpenVista helps reduce the cost of managing patient health information and lowers overall healthcare costs by addressing medication administration issues and duplicate testing. Founded in 2002 and based in Carlsbad, California, Medsphere describes itself as a team of clinical and technology professionals working to make quality health IT accessible to organizations of virtually any size. Management plans to grow the customer base and expand the product menu and reports a strong pipeline of potential opportunities. Medsphere recently secured a $7.5 million venture loan to support working capital needs. Medsphere Systems is an open-source electronic health records provider based in Carlsbad, Calif., that adapts VistA — the Veteran Health Administration’s electronic medical records system — for commercial use. Its OpenVista product is positioned as a lower-cost alternative for budget-conscious hospitals and is used by about 20,000 people and 2,500 doctors. The company said it raised $12 million to meet demand from hospitals racing to qualify for federal stimulus funds tied to electronic records adoption. The federal government has promised $19 billion in stimulus funds for hospitals that make the transition by 2011 and will penalize noncompliant hospitals starting in 2015, which is driving demand. Medsphere’s business centers on deploying and supporting OpenVista implementations for hospitals that prefer an open-source route to replace paper records. The article does not disclose revenue or profitability figures.

Participated · Equity · Jul 2009

Control4 is a provider of an operating system for the smart home and a manufacturer of wired and wireless home automation products. Its products integrate control of lighting, audio, video, landscape and climate into a single system and are modular, enabling residential, commercial, energy, and hospitality customers to start with one product and add to their systems over time. The company also provides the MyHome app, which lets iPhone, iPad, laptop and Android devices function as control systems. Founded in 2003 by Will West and Eric Smith and based in Salt Lake City, Utah, Control4 sells through a dealer network and international distribution. Today it has over 1,600 dealers in the US and Canada with distribution in 70 countries. The article does not disclose revenue or profitability; it reports an investment from GSV Capital of an undisclosed amount and lists Foundation Capital and Cisco among other investors. Control4 is a company that builds home energy management modules. The article reports the company has raised $15 million out of a planned $25 million financing round. The financing instrument and investor identities are not disclosed in the article. Control4 recently teamed with smart grid company Silver Spring Networks to roll out several home smart grid applications. The reported raise is described as a partial realization of the larger planned $25 million round. Control4 makes a universal remote control that can adjust home appliances and electronics, centralizing control of devices from televisions to thermostats. The company is expanding into smart-grid and cleantech initiatives, including advanced metering, energy-management displays, and consumer behavior programs to encourage energy conservation. It plans to increase the number of devices integrated into its "Home Area Network" and to offer in-home displays that show power usage and cost in real time. Control4 intends to leverage two-way communications enabled by smart meters, ZigBee metering technology and broadband to allow utilities to signal peak times and for consumers to remotely turn off appliances. The company competes with Google PowerMeter, Microsoft Hohm, EnergyHub, Onzo and other smart-metering players while also facing competition in remote controls from iControl and 4HomeMedia. Financially, Control4 raised $17.3 million in the recent round and previously took in $20 million in June 2008 to continue remote-control development.