InstaMed, a healthcare payments network, has raised USD6m in growth capital.
This round of funding included both debt and equity capital and came from existing InstaMed investors who with this round have invested USD22m to date.
InstaMed investors include Osage Partners, Ashby Point Capital, NJTC Venture Fund, US Bank, and a private equity group in Newport Beach, California.
The private equity group in Newport Beach, California, which includes eight high-net worth families from Southern California, contributed the largest amount of capital, both as a part of this funding and since InstaMed’s inception.
Osage Partners contributed USD1.3m in this funding.
“We believe InstaMed is defining the landscape for healthcare payments, a total market opportunity estimated at USD20bn per year and growing,” says Tim Collins, director of InstaMed and general partner in the Newport Beach private equity group. “We’re confident in InstaMed’s growth and look forward to our continued involvement with the company and its proven management team.”
“This capital will help us continue our current growth trajectory and enhance the quality of our services as we scale. We are very fortunate to have a solid and diverse base of investors,” adds Bill Marvin, president and chief executive of InstaMed.
The company will use the capital to sustain its investment in new business and enhance its bi-coastal, fully redundant data centre infrastructure and operations.
InstaMed has raised a total of USD22m in debt and equity since its inception in August 2004. As of August 2010, InstaMed had processed over USD10bn in healthcare payments, up from USD1bn as of August 2008.
