Validic Raises $5 Million Series A To Expand Digital Health Integration Engine

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Durham, NC-based digital health startup Validic closes a $5 million Series A round co-led by Greycroft Partners and SJF Ventures. SJF is a returning investor, after leading Validic’s $1.25 million seed round in March of this year. In total, Validic has raised just north of $7 million in venture funding since its 2010 launch.

The rate at which Validic is burning through its investment funding might be of concern to some, considering that the company is closing a multi-million dollar round just on the heels of its million-dollar seed round in March, but the startup has good reason for needing fresh capital. In July, with just $2 million in funding under its belt, Validic acquired Infometers, one of its key competitors. The acquisition brought additional technical capabilities, an influx of new employees that were already familiar with the emerging industry, and a presence on the west coast to complement its Durham, NC headquarters.

With Infometers on board, Validic now owns healthcare’s largest one-to-many digital health integration engine. The company’s technology captures health data from remote-monitoring devices, fitness trackers, medical devices, and health apps. This information is captured directly from the source, and then it is normalized and delivered to the payers, health systems, pharmaceutical companies, and digital health startups that make up Validic’s customer base. 

Validic’s concept is one that has attracted the attention of several major consumer electronics players. Apple recently unveiled HealthKit, a health data API that aims to bring a very similar set of features to the health IT market, for free. Both Epic and Allscripts are reportedly building integration points with HealthKit in preparation for its September rollout. Not to be outdone, Google has unveiled a nearly identical API in its latest Android release, and Samsung has followed suit offering its own version of a health data API. Undoubtedly, there will be increased pressure on Validic to differentiate itself from these new, free players in its market.

Validic says the new funding will be used to build out its products and to support customer growth.


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