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HC1.com raises $13.2 million in growth capital

October 19, 2015

Indianapolis-based Hc1.com Inc., which sells customer-management software to health care enterprises, has raised $13.2 million in growth capital, the company announced Monday.

About $8.2 million came from existing equity investors, CEO Brad Bostic said. The other $5 million is venture debt provided by Greenwich-based SCM Specialty Finance Opportunities Fund, an affiliate of CNH Finance LP.

Hc1 plans to use the money primarily for hiring sales and marketing people, Bostic said, as well as bolstering distribution channels.

"The capital is dedicated to growth, generally organic growth, although we are looking at some things where there might be some acquisitions we could potentially make as well."

Founded in 2011, Hc1 sells cloud-based software that helps diagnostic labs and health care systems organize patient data, manage interactions and more.

It considers itself one of the pioneers in the sector, which has attracted competitors. Last month, for instance, Salesforce.com launched the Salesforce Health Cloud.

The latest capital infusion is an add-on to a round that kicked off with Hc1 landing $14 million in late 2014, Bostic said. Indianapolis-based NWS Holdings, which has ties to liquor distributor National Wine and Spirits, led the most recent equity raise.

Hc1's ride hasn't been without bumps, though. It terminated eleven out of just under 100 employees in early September. Bostic said the cuts came in sales and technology, and they dealt with underperforming sales reps and redundancy elimination after a tech-division restructuring.

Bostic said the company has since hired six salespeople and intend to hire more with the recent capital infusion.

Bostic said hc1 has about 700 clients in five countries, including Cleveland Clinic and Sonic Healthcare. He declined to disclose annual sales, but said the company finished 2014 with revenue in the high-seven-figure range and expects that to grow 70 percent for 2015.

"The trends continue to be extremely favorable for this need to do health care relationship management," Bostic said, "so I think we are positioned well to be a major player in that space."
 

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