Innovaccer, a health technology startup that aggregates patient data across care systems and settings, is in advanced stages of talks with investors to raise up to $250 million in a new funding round, three sources familiar with the matter told TechCrunch.
Deliberations for the new funding round are underway and current negotiations propose a value of between $2.5 billion and $3 billion for the nine-year-old company, the sources said, requesting anonymity because details are confidential.
Innovaccer has developed a cloud-based software layer that integrates with existing electronic health record systems used by healthcare organizations. The platform enables the unification and analysis of patient data from various sources, providing healthcare providers with a comprehensive view of their patients’ health status. By leveraging its technology and cloud architecture, Innovaccer aims to bring efficiencies and accelerate growth in the healthcare sector, which has been slow to adopt technology compared to other sectors.
Innovaccer – which counts Tiger Global, Mubadala, Lightspeed, Dragoneer, Microsoft’s M12 fund and Steadview Capital among its backers – was valued at $3.2 billion in a funding round disclosed in late 2021. The startup based in San Francisco has raised more than $375 million to date.
Discussions about some secondary transactions — in which existing backers, employees or founders sell their shares directly to other investors, as opposed to the startup selling the shares — are also underway, the sources said. The proposed negotiations for the secondary transactions value Innovaccer at just $2 billion, the sources added.
According to a source, the Kaiser Permanente health system is among those committed to leading the funding round, which is expected to be divided into several tranches. Kaiser Permanente and Innovaccer share a long history; Kaiser is a client of Innovaccer and has seen many of its executives join the San Francisco-based startup.
On Tuesday, Kaiser announced it has deepened its partnership with Innovaccer to improve the health system’s value-based care services.
A spokesperson for Innovaccer denied that the company had launched a funding round. Kaiser did not respond to a request for comment. A deal could be reached as soon as this month, a source said.
According to its website, Innovaccer has helped unify more than 54 million patient records, served 96,000 clinicians and saved its customers more than $1.5 billion. The startup’s ARR, as of the end of December, was nearly $140 million, according to a source.
Innovaccer operates on a subscription-based business model, charging customers based on the number of patients, modules subscribed to and endpoints. The company’s cloud platform offers multiple layers of services, including master data, CRM, virtual care and remote patient care.
It differentiates itself by addressing the lack of information interoperability of the traditional healthcare system, by deploying a framework with a common language that brings together data and connects different healthcare systems.
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