Health Intelligence Company, Springbuk, Announces $20 Million Series B Round
INDIANAPOLIS (Jan. 22, 2018) -- Springbuk, the nation's leading employer-facing health intelligence software, has announced a $20 Million Series B round of financing. This financing round was led by California-based HealthQuest Capital and Echo Health Ventures, a strategic collaboration of Cambia Health Solutions and Mosaic Health Solutions. St. Louis-based Lewis & Clark Ventures and Indianapolis-based Elevate Ventures also participated in this financing round.
Springbuk was founded in 2015 by Rod Reasen and Phil Daniels, co-founders of the Healthiest Employers awards program, with the mission to empower employers to lower their healthcare costs by harnessing their health data. Today, over 1,000 employers use Springbuk's software to glean actionable insights to improve their population's health.
With this capital investment, the health analytics software company aims to identify $4 Billion in potential health cost savings by the end of 2020. To date, their software has analyzed over $7 Billion in health claims and identified over $250 Million in potential cost savings for employers. The growth and expansion include a heavy emphasis on product innovation, data operations, and investments in customer success initiatives.
The software, which has already been heralded by clients as "extremely important" and "an absolute game changer," offers industry-leading functionality and is poised for continued enhancements in the coming year.
"The Springbuk platform has been built to solve a very large problem—the rising costs of healthcare—and this round of financing is representative of the scope of the challenge that we've undertaken," said Reasen. "As someone who has spent over 20 years in the health insurance space, I believe that this platform will truly revolutionize the industry."
Springbuk evaluated several venture capital firms, with the goal of finding strategic partners who could help realize meaningful growth and provide best-in-class thought leadership on product and infrastructure development and market characteristics.
"We had conversations with over 75 venture capital firms nationally. For us, it was all about finding partners who could help us execute our vision," Reasen said. "By partnering with HealthQuest Capital and Echo Health Ventures, we are one step closer to accomplishing our ultimate goal of preventing disease with data."
Springbuk's new partners were equally complimentary. "Springbuk has proven that employers play an increasingly critical role in reducing healthcare costs. The software goes beyond historic reporting to provide HR leaders and benefit consultants with the intelligence and direction needed to tackle rising costs and improve compliance of care for today's workforce," commented Dr. Garheng Kong, Founder and General Partner at HealthQuest Capital.
"Every employer strives for a culture of wellness," said Echo Health Ventures Partner, Anisha Sood. "Springbuk synthesizes massive amounts of health data generated by a company's workforce and translates it into simple, actionable insights. Echo Health Ventures is excited to partner with Springbuk's passionate leadership team and offer our expertise, network and scale to help accelerate their growth."
Brian Hopcraft, Managing Director of Lewis and Clark Ventures added, "With Springbuk continuing to outperform, we are delighted to contribute to this round. The company's vision, team, and relentless focus on their customers have made them industry leaders. We're excited about their next phase of growth."
Chris LaMothe, CEO of Elevate Ventures added "Elevate Ventures is enthused to be a part of this important step for Springbuk. As one of Springbuk's early investors, Elevate was attracted to the market potential as well as the founding team's passion and commitment to building a first-class company culture and a high-growth venture. We continue to believe Springbuk has an exciting future ahead."
"This investment, which is among the largest that our city has seen, sends a loud, clear message to the rest of the country: We build high-value technology in Indianapolis," said Phil Daniels. "This city is the perfect hotbed of both healthcare and tech talent for us to build a company that can help save billions of dollars in healthcare costs."
They are currently estimating that this expansion will add over 100 high-tech jobs to the Indianapolis area by 2020. This expansion was lauded by Indianapolis Mayor, Joe Hogsett.
"This investment in Springbuk is one that truly makes our city proud, as a homegrown company harnesses technology to improve lives and bottom lines," said Hogsett. "We look forward to the continued expansion of Springbuk and the 100 new high-tech jobs that are now on our horizon."
Springbuk is the nation's leading employer-facing health analytics software solution. The software is leveraged by employers, benefits consultants, onsite clinics, TPAs, and wellness vendors to identify what claims are driving costs within populations. This allows Springbuk to provide all stakeholders with actionable insights to improve employee health and drive down healthcare costs over time. Learn more at www.springbuk.com.
About HealthQuest Capital
HealthQuest Capital makes early growth investments in innovative commercial-stage healthcare companies that are improving both patient outcomes and healthcare economics. Investments focus on medical products, diagnostics, healthcare IT and technology-enabled healthcare services. The HealthQuest investing team includes deep operational, clinical and scientific expertise and worldwide relationships throughout the healthcare industry that can be leveraged to add value to its portfolio companies. HealthQuest Capital is headquartered in Belmont, CAwith west coast and east coast offices. Learn more at www.healthquestcapital.com.
About Echo Health Ventures
Echo Health Ventures LLC invests to build and grow tomorrow's great health care companies. We invest across every stage and work with our portfolio companies to challenge and transform the health care system. As a strategic collaboration of Cambia Health Solutions and Mosaic Health Solutions, we work closely with our Parents to catalyze the development of our portfolio companies' and accelerate their innovations to scale nationally. Echo Health Ventures operates nationwide with offices in Seattle, Durham, N.C., and Portland, Ore. Follow us on Twitter @healthecho.