Health Catalyst Raises $70 Million Series D, Raising Total Funding To $170 Million

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Salt Lake City-based data analytics vendor Health Catalyst announces that it has raised an additional $70 million in Series D funding led by existing investor Norwest Venture Partners, and with contributions from existing investors Sequoia Capital, Kaiser Permanente Ventures, Sorenson Capital, CHV Capital  and Partners HealthCare. The oversubscribed round also welcomed several new investors, including Sands Capital Ventures, Tenaya Capital, Epic Ventures, and Leavitt Equity Partners. The new round follows a $41 million Series C that Health Catalyst closed in January 2014, and brings the company’s total funding level to $170 million.

Health Catalyst is a data analytics vendor building a commanding presence in the industry. The company markets an analytics tool that extracts data from existing health IT systems and integrates the data into a Health Catalyst database where business and clinical analytics dashboards help hospital managers benchmark quality and operational performance levels, and monitor trends over time. After seven years in operation, the company has signed some of the nations leading health systems and received a Best in KLAS award for the data warehousing and analytics category.

In January, Allina Health signed a $100 million 10-year deal with Health Catalyst to provide data analytics services, with 20 percent of the contract value being tied to performance. Allina plans to use the system to reduce sepsis rates, manage its diabetic population, and improve vaccination rates.

Now, with a $500 million valuation, speculation is swirling around a possible IPO. CEO Dan Burton commented in a Forbes article that the timing for an IPO “will be based on market factors to ensure that we’re timing it appropriately.” Until then, the company will use its new funding to ramp up product development, specifically in the areas of clinical operations tied to either quality improvements or outcomes improvements.


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