Penn spinout CareAlign raises $2.3M from investors with ties to Harvard, Princeton
PHILADELPHIA, Nov. 30, 2021 — CareAlign, a HIPAA compliant task management system for health care providers, has announced a $2.3 million round of financing, spurred by new investment from Hofmann Associates, Gaingels and Harvard Angels. Hofmann Associates led the round and existing investors Tech Council Ventures, Boston Millennia Partners’ Founders Fund, Front Row Round and DreamIt also participated. Two healthcare provider organizations have also made commitments.
With the additional capital, CareAlign will expand both its sales force and its technology offerings. The company initially validated its care coordination platform in acute care settings by reducing the amount of time clinicians spend in the EHR and improving patient outcomes. This year, CareAlign expanded to post-acute and outpatient care and recently started offering value-based care organizations solutions to help them manage patients as they transition across care settings.
“For many years the focus of technology innovation in healthcare settings has been on billing, coding, and improving the patient experience. These are certainly important areas, but it neglects the needs of clinicians and hasn’t eliminated many of the impediments they face when collaborating with their peers,” said CareAlign Chief Executive Officer Subha Airan-Javia, MD. “It’s our goal to holistically improve the workflow, and we’re backed by investors who have the knowledge and experience to help drive change across the healthcare industry.”
The pandemic has magnified problems with the way healthcare workers care for patients and communicate across care teams. Some experts believe that existing systems and practices have contributed to burnout among healthcare professionals.
“As the largest investor network focused on supporting and investing in the best venture-backed companies that embrace and value diverse leadership, including LGBTQ+, Gaingels is proud to join this strong investment team and is committed to helping the company solve for the healthcare industry’s Achilles’ Heel — communication. It’s clear that diversity and inclusion is part of CareAlign’s formula for success, as the company continues to change the way clinical teams collaborate and deliver care.”
CareAlign’s notable features include an integrated, real-time “progress note” format that enables clinical professionals to understand a patients’ current state of health. Users are linked on a common communication thread and those who share patient caseloads can interact and create “checklists” during rounds to avoid errors.
“Many problems in medicine are caused because of the lack of communication and documentation. CareAlign actually streamlines the process and significantly reduces the time [spent on documentation], as well as getting the entire medical team on the same page so nothing gets missed,” said Kiran Patel, D.O., hospitalist at Crozer Health.
In 2021, the company solidified its executive team and completed the launch of its direct-to-clinician platform. CareAlign also expanded the technology’s application to several new use cases, including assisted care facilities. The company has tested value-based care arrangements and anticipates an acceleration of growth with providers who endorse the model.
CareAlign is a HIPAA Complaint task management platform that reduces the risk of communication related medical errors while also reducing the documentation burden on providers of care. Half of CareAlign’s customers use the platform stand-alone while the other half integrate CareAlign into their EHR to create a paperless rounding and handoff experience. For more information visit http://www.CareAlign.ai.
Gaingels is the leading investment syndicate in support of and representing the LGBTQ community and allies in the venture capital space. With over $380,000,000 deployed into a portfolio of over 600 companies since 2018, Gaingels is also the co-founder of Mathison.io and provides an internal at-cost diverse board member/observer recruitment advisory for our portfolio companies. Gaingels invests in companies with LGBT founders and C-suite leaders at all stages of growth, as well as in other high-growth companies resolved on building more inclusive teams. Gaingels is a founding co-signer of the Diversity Term Sheet Rider Initiative to increase access to venture funding events for non-traditional check writers, and regularly co-invests with select VC leads across a variety of sectors, from technology, to B2B, healthcare and consumer, in competitive and over-subscribed rounds from Seed to Growth/pre-IPO. For more information visit http://www.gaingels.com.
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