Valence Health has received a USD15 million growth equity investment, the second round of financing the company has received in its nearly 20-year history – the first being USD30 million in the summer of 2012.
Led by Heritage Group, a healthcare-focused venture capital firm based in Nashville, this investment round also included Foundation Medical Partners, GE Ventures, and North Bridge Growth Equity.
“Valence Health is unique among organisations assisting healthcare providers in implementing and managing various forms of value-based care,” says Rock Morphis, Managing Director at Heritage Group. “They have been helping providers with clinical integration, risk-arrangements and provider-sponsored plans for nearly two decades. We were attracted to Valence Health because of its proven experience, deep expertise, and mission-driven orientation to help providers.”
In an announcement this summer that included Illinois Governor Pat Quinn, the company indicated significant continued growth: in addition to growing revenues 50% over last year, the organisation has added more than 150 employees this year, and will move to a new national headquarters in Chicago.
Valence Health CEO Phil Kamp sees the investment as a way for the organisation to serve even more provider organizations more quickly. “We’ve been steadily growing and investing in our infrastructure since our inception in 1996,” says Kamp. “This latest round of investment allows us to accelerate our efforts to reach more providers who are pursuing various approaches to value-based care. More specifically, we will use the funds to invest in additional software development, sales and marketing, and client management resources.”
The investment group also included new investors Foundation Medical Partners (FMP), GE Ventures and existing investor North Bridge Growth Equity. FMP General Partner Bill Geary, says: “Valence Health is a great company because they’ve built the infrastructure properly over a long period of time. Over nearly twenty years, they’ve continually reinvested in excess of a hundred million dollars into the business to better serve clients. That type of disciplined growth creates an organisation that has the experience and confidence to work with clients in flexible and practical ways. They’ve seen just about every iteration of value-based care, and can work together with clients to create a customised, effective approach instead of dictating a one-size fits all solution.”
Doug Kingsley, Managing Director of North Bridge Growth Equity, cited the company’s end-to-end solution set as the compelling reason for their reinvestment: “Valence Health offers technology, consulting and outsourced services all under one roof to help clients at all stages of their value-based journey. Additionally, Valence Health works across all populations including Medicare, Medicaid, commercial and employee health plans, and with all forms of value-based care including clinically integrated networks, shared and full-risk arrangements, and provider-sponsored health plans. This means that Valence Health can meet all of a client’s value-based care needs, saving them the time, money and risk of stitching together various point solutions.”
