In one of the largest single investments in an Indiana tech company over the past couple of years, Springbuk announced today that the two-year-old company has secured $20 million in Series B financing.
According to company officials, the new capital infusion will drive growth and expansion with a heavy emphasis on product innovation, data operations, and investments in customer success initiatives. Springbuk estimates it will create more than 100 high-tech jobs by 2020.
— Mayor Joe Hogsett (@IndyMayorJoe) January 22, 2018
“This investment in Springbuk is one that truly makes our city proud, as a homegrown company harnesses technology to improve lives and bottom lines,” said Indianapolis Mayor Joe Hogsett. “We look forward to the continued expansion of Springbuk and the 100 new high-tech jobs that are now on our horizon.”
In the near term, Springbuk plans to keep its headquarters in The Union 525, and company executives are hoping to find a way to expand their footprint within the building. The Union 525 administrative team and the proximity to and camaraderie with several other successful tech startups are key reasons Springbuk is staying put for now.
“My top priority is to make Springbuk the best place for an engineer to work in Indianapolis,” said Steve Caldwell, vice president of technology for Springbuk. “This round of funding allows us to accelerate the hiring of top web developers, software engineers, data scientists, DevOps engineers, and security professionals. We are also significantly expanding our training programs, conference participation, and off site ‘hack days’.”
Springbuk, the nation’s leading employer-facing health intelligence software, was founded in 2015 by Rod Reasen and Phil Daniels, co-founders of the Healthiest Employers awards program. The company’s mission is to empower employers to lower their healthcare costs by harnessing their health data. Today, over 1,000 employers use Springbuk’s software to glean actionable insights to improve their population’s health.
The $20 million financing round was led by California-based HealthQuest Capital and Echo Health Ventures, a strategic collaboration of Cambia Health Solutions and Mosaic Health Solutions. St. Louis-based Lewis & Clark Ventures and Indianapolis-based Elevate Ventures also participated in this financing round. According to PitchBook data, this $20 million round will be the biggest Series B venture round for an Indiana-headquartered tech startup at least in the past decade.
With this capital investment, the health analytics software company aims to identify $4 billion in potential health cost savings by the end of 2020. To date, their software has analyzed over $7 billion in health claims and identified over $250 million in potential cost savings for employers.
The software, which has already been heralded by clients as “extremely important” and “an absolute game changer,” offers industry-leading functionality and is poised for continued enhancements in the coming year.
More from the $20 million Series B announcement press release:
“The Springbuk platform has been built to solve a very large problem—the rising costs of healthcare—and this round of financing is representative of the scope of the challenge that we’ve undertaken,” said Reasen. “As someone who has spent over 20 years in the health insurance space, I believe that this platform will truly revolutionize the industry.”
Springbuk evaluated several venture capital firms, with the goal of finding strategic partners who could help realize meaningful growth and provide best-in-class thought leadership on product and infrastructure development and market characteristics.
“We had conversations with over 75 venture capital firms nationally. For us, it was all about finding partners who could help us execute our vision,” Reasen said. “By partnering with HealthQuest Capital and Echo Health Ventures, we are one step closer to accomplishing our ultimate goal of preventing disease with data.”
Springbuk’s new partners were equally complimentary. “Springbuk has proven that employers play an increasingly critical role in reducing healthcare costs. The software goes beyond historic reporting to provide HR leaders and benefit consultants with the intelligence and direction needed to tackle rising costs and improve compliance of care for today’s workforce,” commented Dr. Garheng Kong, Founder and General Partner at HealthQuest Capital.
“Every employer strives for a culture of wellness,” said Echo Health Ventures Partner, Anisha Sood. “Springbuk synthesizes massive amounts of health data generated by a company’s workforce and translates it into simple, actionable insights. Echo Health Ventures is excited to partner with Springbuk’s passionate leadership team and offer our expertise, network and scale to help accelerate their growth.”
Brian Hopcraft, Managing Director of Lewis and Clark Ventures added, “With Springbuk continuing to outperform, we are delighted to contribute to this round. The company’s vision, team, and relentless focus on their customers have made them industry leaders. We’re excited about their next phase of growth.”
Chris LaMothe, CEO of Elevate Ventures added “Elevate Ventures is enthused to be a part of this important step for Springbuk. As one of Springbuk’s early investors, Elevate was attracted to the market potential as well as the founding team’s passion and commitment to building a first-class company culture and a high-growth venture. We continue to believe Springbuk has an exciting future ahead.”
“This investment, which is among the largest that our city has seen, sends a loud, clear message to the rest of the country: We build high-value technology in Indianapolis,” said Phil Daniels. “This city is the perfect hotbed of both healthcare and tech talent for us to build a company that can help save billions of dollars in healthcare costs.”