Health Catalyst Raises $70 Million Series E

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Salt Lake City-based data analytics vendor Health Catalyst announced Monday that it has raised another oversubscribed $70 million in funding in the form of a Series E investment round. The round was co-led by UPMC and Northwest Venture Partners, a firm with strong history of digital health investments and a history with Health Catalyst. Northwest led the startups $33 million Series B in 2013, and returned to participate in both the Series C and D, before stepping up to lead the most recent Series E. UPMC, a Health Catalyst customer, has also made news recently as it continues to buy equity stakes in startups that it is a customer of. The health system also announced that it had co-led the population health vendor Vivify Health’s $17 million Series B earlier this week. Prior investors Sequoia Capital, Kaiser Permanente Ventures, Partners Healthcare, Sands Capital, Epic Venture Partners, Leavitt Equity Partners, CHV, and Tenaya Capital also returned to join the round. OSF Healthcare and MultiCare Health System, both Health Catalyst customers, also joined the round as new investors. The new funding brings Health Catalyst’s total raised to $222 million since its 2008 launch.

IPO speculation has been prominent since Health Catalyst closed a large, and oversubscribed $70 million Series D round in 2015. At the time, CEO Dan Burton denied rumors that he was preparing the company for a short-term IPO, noting that the company did eventually intend to go public, but not before allowing the company to scale up more. Since those comments, the company has doubled its bookings, revenue, and customer base. It has also grown its employee base from 230 to 400.

Now, Burton is more optimistic about the possibility of an IPO in the future. He notes, “We anticipate that this is the company’s last round of capital as a private company as we expect to be cash-flow sustainable by the fourth quarter of 2016.” While Burton does not go so far as to confirm IPO plans, he does say that internally the company is looking at 2016 as its last year as a private company.  With $220 million in venture backing and strong demand for its analytics tools, the company is beginning to look like a strong IPO candidate.


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