Datavant has successfully raised $40.5 million over two funding rounds, achieving a valuation of $7 billion. The company connects the world’s health data to improve patient outcomes.
Keep reading to explore the intricacies of Datavant's fundraising journey and the investors backing this innovative platform.
What Is Datavant?
Datavant, founded in 2017, is a health data platform company dedicated to making health data secure, accessible, and actionable. The company operates remotely with employees distributed across the US, Canada, and Europe.
Datavant's mission is to connect and protect health data to improve patient outcomes. It has built a vast network that includes over 70,000 hospitals and clinics, and 70% of the 100 largest health systems.
With approximately 1,500 employees, Datavant continues to expand its reach and impact in the healthcare industry, driving data connectivity and delivering critical solutions across the healthcare ecosystem.
How Much Funding Has Datavant Raised?
- Amount Raised: $10 million Date: May 2018 Lead Investors: Roivant Sciences Motivation Behind the Round: To accelerate the development of its health data platform and expand its network of healthcare providers.
- Amount Raised: $30.5 million Date: June 2020 Lead Investors: Transformation Capital Motivation Behind the Round: To enhance data connectivity solutions and support the company's growth in the healthcare sector.
Datavant has raised a total of $40.5 million in funding, achieving a current valuation of $7 billion.
Key Investors
- New Mountain Capital
- Details: New Mountain Capital is a New York-based investment firm that emphasizes business building and growth. It manages over $30 billion in assets.
- Investment Focus Areas: Private equity, credit, net lease real estate, public equity.
- Notable Investments: Avantor, Equian, Zep.
- Roivant Sciences
- Details: Roivant Sciences develops transformative medicines and builds technologies to improve healthcare delivery. It focuses on launching nimble and focused biopharmaceutical and health technology companies.
- Investment Focus Areas: Biopharmaceuticals, health technology, transformative medicines.
- Notable Investments: Myovant Sciences, Urovant Sciences, Dermavant Sciences.
- Transformation Capital
- Details: Transformation Capital is a growth equity firm focused on innovative healthcare companies. It partners with companies that are transforming healthcare through technology and services.
- Investment Focus Areas: Healthcare technology, healthcare services, digital health.
- Notable Investments: Health Catalyst, Omada Health, Privia Health.
- Merck Global Health Innovation Fund
- Details: Merck Global Health Innovation Fund invests in companies that are transforming healthcare through innovative solutions. It is a strategic investment arm of Merck & Co.
- Investment Focus Areas: Digital health, health IT, medical devices.
- Notable Investments: Livongo, Preventice, WellDoc.
- Labcorp
- Details: Labcorp is a global life sciences company that provides comprehensive clinical laboratory and end-to-end drug development services. It is known for its extensive network of laboratories and healthcare services.
- Investment Focus Areas: Clinical diagnostics, drug development, healthcare services.
- Notable Investments: Covance, Sequenom, Chiltern.
What's Next for Datavant?
With the merger of Datavant and Ciox Health, the combined entity stands poised to revolutionize the health data landscape. This merger creates the largest neutral and secure health data ecosystem, serving over 2,000 U.S. hospitals, 15,000 clinics, and numerous other stakeholders. The opportunity to enhance patient privacy and improve healthcare efficiency is immense, with the company now positioned to generate over $700 million in revenue.
Future fundraising efforts are likely to be bolstered by significant new investments from firms like Sixth Street and Goldman Sachs Asset Management. These funds will be crucial for expanding the ecosystem and developing new technologies. However, Datavant will need to navigate complex regulatory and operational challenges to ensure patient privacy and data security, all while integrating the operations of both companies.
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