Phoenix, AZ, Dec. 5, 2013, − ClearDATA Networks, Inc., the leading healthcare cloud computing platform and service provider, today announced the close of an over-subscribed $14M Series B funding round that will provide the company with capital to maximize its growth opportunities and momentum in the Health Information Technology (HIT) cloud computing market.
Investors in the B round of financing include the Merck Global Health Innovation Fund, Excel Venture Management and Norwest Venture Partners. ClearDATA previously had a first closing of its Series B round and held a second closing for strategic investor Merck Global Health Innovation Fund.
The $35 billion healthcare information technology market is growing at an estimated 20 percent annually, fueled by the need for thousands of healthcare providers to migrate to electronic records and maintain vast amounts of data. The industry-wide transformation from a volume- to a value-based system relies heavily on capturing and analyzing healthcare data to improve the quality of care while reducing costs.
Exclusively dedicated to the healthcare industry, ClearDATA’s HIPAA-compliant cloud computing platform currently serves more than 300,000 healthcare professionals and secures tens of millions of healthcare records. The company hosts data and applications for many provider and hospital organizations, and healthcare software and service vendors.
“The IT demands on healthcare organizations are greater than ever-and they will continue to grow as Big Data and analytics take hold in the industry,” said Darin Brannan, CEO of ClearDATA. “Our investors recognize the escalating need for hosting and services in the cloud that can help these organizations reduce IT costs while improving productivity, reliability, security, regulatory compliance, business continuity and agility.”
“ClearDATA is addressing major issues in the healthcare industry by providing meaningful cost reductions and improving the manageability and security of healthcare data and applications,” said Robert Abbott, general partner, Norwest Venture Partners.
“ClearDATA has the potential to be an important data steward for protected health information in the health care industry,” said Joe Volpe, investment principal for Merck Global Health Innovation Group. “As the need to analyze vast amounts of data increases, ‘Big Data’ presents opportunities to improve patient health.”
ClearDATA CEO Darin Brannan, a veteran serial entrepreneur with more than 20 years of combined venture capital, entrepreneurial and public company executive experience, leads a team of healthcare technology and cloud computing executives who are industry experts in cloud computing, healthcare technology and security solutions. Brannan founded two successful NVP portfolio companies, Verio, Inc. and Website Pros (Web.com). Both companies achieved successful IPOs and market leadership in their respective cloud/hosting segments. This is the third time NVP has backed Brannan.