Total amount raised
$253 Millions
Latest funding date
3/1/2024
Location
Capital Rx has successfully raised significant funding over multiple rounds, attracting a diverse group of investors including Prime Therapeutics and Banner Health. The company offers a healthtech platform that aims to redefine prescription pricing and administration in the U.S. through its innovative Clearinghouse Model.
Keep reading to explore the intricacies of Capital Rx's fundraising journey and the investors backing this transformative platform.
What Is Capital Rx?
Founded in December 2017, Capital Rx is a health technology company based in New York, New York. The company was established by AJ Loiacono, Joseph Alexander, and Ryan Kelly.
Capital Rx specializes in pharmacy benefit management (PBM) and pharmacy benefit administration (PBA) solutions. Their offerings include a cloud-native enterprise health platform called JUDI, pharmacy benefits management services, and a prescription discount card known as the Capital Rx Advantage Card.
With a team of 11-50 employees, Capital Rx aims to redefine prescription pricing and administration in the U.S. through its innovative Clearinghouse Model.
How Much Funding Has Capital Rx Raised?
- Seed Round
- Amount Raised: $3M
- Date: March 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop initial product offerings.
- Series A
- Amount Raised: $12M
- Date: July 2019
- Lead Investors: Edison Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale the platform's capabilities.
- Venture Round
- Amount Raised: $32M
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance technological infrastructure.
- Series B
- Amount Raised: $50M
- Date: February 2021
- Lead Investors: Transformation Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the JUDI platform and expand market reach.
- Series C
- Amount Raised: $106M
- Date: June 2022
- Lead Investors: B Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's role in reducing drug costs and expanding its software solutions.
- Series D
- Amount Raised: $50M
- Date: October 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling operations and enhance product offerings.
- Corporate Round
- Amount Raised: Not publicly disclosed
- Date: March 2024
- Lead Investors: Prime Therapeutics
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen strategic partnerships and expand market presence.
Total Amount Raised: $253M. Current Valuation: Not publicly disclosed.
Key Investors
- Prime Therapeutics
- Details: Prime Therapeutics is a pharmacy benefit manager (PBM) owned by 19 Blue Cross and Blue Shield Plans. They provide pharmacy benefit management services to health plans, employers, and government programs.
- Investment Focus Areas: Healthcare, pharmacy benefit management, insurance.
- Notable Investments: Capital Rx.
- B Capital
- Details: B Capital is a global investment firm that partners with extraordinary entrepreneurs to shape the future through technology. They focus on funding companies with advanced technology stacks that create value and efficiency in their respective industries.
- Investment Focus Areas: Technology, healthcare, logistics.
- Notable Investments: Bird, Evidation Health, Ninja Van.
- Transformation Capital
- Details: Transformation Capital is a growth equity firm focused on innovative healthcare IT and services companies. They aim to support companies that are transforming the healthcare industry.
- Investment Focus Areas: Healthcare IT, healthcare services, digital health.
- Notable Investments: Health Catalyst, InTouch Health, PatientPing.
- Edison Partners
- Details: Edison Partners is a growth equity firm that invests in and partners with high-growth technology companies. They provide capital and strategic support to help companies scale.
- Investment Focus Areas: Fintech, healthcare IT, enterprise solutions.
- Notable Investments: Billtrust, MoneyLion, Clearpool.
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in powerful, positive change that endures. They support transformative companies across various sectors.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: Airbnb, Stripe, Snap.
What's Next for Capital Rx?
Capital Rx stands at the cusp of significant growth opportunities, driven by the increasing demand for transparency and efficiency in the healthcare sector. With a recent $106 million investment, the company is well-positioned to enhance its JUDI platform and expand its market presence. The ongoing scrutiny of pharmacy benefit managers by federal agencies further amplifies the potential for Capital Rx to offer a transparent alternative, attracting more employers, municipalities, and unions.
Future fundraising opportunities appear promising as the company continues to demonstrate its value in reducing drug costs and improving pharmacy management. However, challenges such as navigating regulatory landscapes and maintaining competitive pricing while ensuring profitability could pose hurdles. As Capital Rx scales its operations, ensuring the reliability and scalability of its software will be crucial to sustaining growth.
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