Kareo, a provider of web-based medical billing software for physicians in the US, has closed an investment by Boston venture capital firm OpenView Venture Partners.
OpenView’s recent investment of growth capital, together with its earlier stock purchase from a prior investor, brings OpenView’s total investment to USD9.5m.
Kareo will use the new capital to enhance customer service, expand its product suite, build out sales and marketing initiatives, and bolster its management team.
In connection with the investment, Adam Marcus, a principal at OpenView Venture Partners, has joined Kareo’s board of directors.
"Kareo is growing quickly because we offer a solution that makes it remarkably easy for physicians in small medical practices to run their business and get paid by insurance companies and patients," says Dan Rodrigues, founder and chief executive of Kareo. "We’re very excited to use the new investment from OpenView to further enhance our customers’ experience, expand our product offering and bolster our management team in order to support our rapid growth."
Kareo provides subscription-based software over the internet that helps physicians in small medical practices run their business and get paid by insurance companies and patients. Kareo’s application lets users schedule appointments, verify insurance eligibility, send electronic claims and receive insurance payments, bill patients, manage accounts receivables, store documents, generate reports and more.
"We’re very excited to partner with Dan and his team," says Marcus. "Kareo is profitable, growing rapidly and offers a solution that hits the sweet spot for small medical offices. Providers want an easy-to-use product that significantly increases reimbursements while it dramatically cuts down on administrative costs. We are very bullish on Kareo’s ability to provide a simple, yet elegant solution that will capture a significant share of the small practice segment."
