Google Ventures is reportedly leading a massive $100 million Series B round for health IT startup Flatiron Health. Google and Flatiron are both keeping quiet about the developing deal, but according to Fortune, insiders familiar with the situation are confirming that the deal is all but done and that the announcement is imminent.
Google Ventures makes sense as a VC partner for Flatiron Health. The company was founded by Zach Weinberg and Nat Turner, two former ad-tech entrepreneurs who in 2010, at the age of 24, sold their first startup to Google for $81 million. The pair stayed with their startup and subsequently worked for Google for the next two years. In 2012, both left Google and Silicon Valley for New York City, where they launched their new business, Flatiron Health.
Flatiron Health is building what it calls “the oncology industry’s first cloud-based data platform and the new standard for real-time insights and intelligence,” a description full of buzzwords, yet devoid of any real insight into what they are doing. Weinberg and Turner were accepted to the PILOT Health Tech NYC program, where they were paired with Mount Sinai to pilot a new oncology analytics product. The system is described as one that captures, normalizes, and visualizes oncology quality and performance data for hospitals.
During the POLOT Health Tech demo day, Weinberg described his decision to leave Google and enter the complex world of health IT analytics, with no background or education in medicine, as such “After five years of advertising, you kind of get sick doing advertising. And so we decided, well, what’s the next natural step? And that’s to go and try and cure cancer.”
In reality, the pair had shown signs of interest in health IT long before their departure from Google. As early as 2010, after cashing in on their first startup, they were actively angel investing in a number of health IT projects, including Bell Biosystems, Genomera, SwipeSense, and Oscar Health.
In 2012, when they were ready to start their own Health IT company, Google Ventures backed the effort by leading an $8 million Series A in early 2013. That round also drew investments from First Round Capital, Laboratory Corporation of America, Great Oaks Capital, The Social+Capital Partnership, SV Angel, IA Ventures and other angel investors.
Now, Flatiron has 25 pilot sites running its oncology analytics platform, which it calls OncologyCloud. The company is poised for growth, and if rumors hold true, that growth will be funded by one of the largest Series B rounds in health IT history.