Valence Health Raises $15 Million In Equity Funding For Population Health Tools

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Chicago, Ill.-based Valence Health announces that it has closed a $15 million equity investment led by Heritage Group. Foundation Medical Partners, GE Ventures, and North Bridge Growth Equity also contributed in the round. As part of the exchange, both North Bridge and Foundation Medical have added representatives to the Valence Health board of directors. The new funding brings Valence’s total raised to $45 million, following a $30 million round in 2012 that was led by returning investor North Bridge.

Valence is not a new name to healthcare, the company originally launched some 20 years ago, in 1984, and have a longstanding history of working with providers on risk management and clinical integration. Until 2012, the company had bootstrapped both its initial launch and its scale up. Now, as the Affordable Care Act created a boom in the population health market, Valence is taking outside money to position itself to take advantage of the new opportunities.

Strategically, the plan seems to be working. Valence used its 2012 loan to add 150 new employees to the payroll, and is now seeing the benefit of that investment. The company reports that it has added 10 new clients so far this year, which added to its 75 existing clients, has helped the company generate a 51 percent increase in revenue compared to the same period last year.

Valence markets a number of different solutions, from health IT consulting, to software sales, to data aggregation services and support. The majority of their work focuses on population health, risk stratification, and helping hospitals and practices realign billing processes as part of their migration to a values-based payment model.

Valence reports that it will use the new funding to expand staff, invest in sales and marketing events, and improve the functionality of its systems.


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