According to a Mordor Intelligence report published last year, the global Electronic Medical Records (EMR) market is estimated to grow 10% annually to be worth $22 billion by the year 2021. The industry’s revenue was estimated at $13.64 billion in 2016. Boca Raton-based Modernizing Medicine is making big strides in this high growth market to become a Billion Dollar Unicorn club member.
Modernizing Medicine’s Offerings
Modernizing Medicine was founded in 2010 by serial tech entrepreneur Dan Cane and Dr. Michael Sherling. The company was born out of the need to provide the healthcare sector with the ability to leverage emerging technology trends such as cloud computing, touchscreen capabilities, personalization, and adaptive learning. It began its offerings by building a system for clinical documentation in the dermatology segment. Today, its offerings are focused on specialized practices of Gastroenterology, Ophthalmology, Orthopedics, Plastics, and Otolaryngology.
The company’s flagship product is the Electronic Medical Assistant (EMA) that uses advanced technology solutions to intuitively adapt to each individual doctor’s unique style of practice and remember preferences. It is cloud-based and developed by physicians so that it allows doctors to take exam notes and helps generate billing codes automatically. It has integrated the standard touch-and-swipe technology of today into medical solutions to help improve speed and efficiency for the doctors. It also integrates with structured treatment and outcome data from millions of patient encounters to provide the doctors with access to in-depth nationwide medical knowledge.
More recently, the company has been expanding its offerings to build mobile patient engagement applications, evaluate e-commerce and grow telemedicine. It has been investing in technologies that streamline prior authorization to help patients to get the treatments they need faster. For instance, it has been developing an app called schema as part of IBM Watson’s ecosystem project. The new app would leverage EMA with aggregated EHR data and add in Watson’s ability to parse unstructured data to give medical specialists the best data on treatment options for their patients.
Modernizing Medicine’s Financials
Modernizing Medicine operates on a subscription-based revenue model. It does not disclose detailed financials, but the company is expected to be doing rather well. In 2013, when I met with its co-founder and CEO Dan Cane, it was trending at annual revenues of $20 million and was targeting to turn in a profitable year. More recent news reports suggest that it has crossed the $100 million revenue threshold.
Modernizing Medicine has been venture funded so far with $332.6 million in investments from investors including Warburg Pincus, IBM, Pentland Group, Sands Capital Ventures, Silicon Valley Bank, and Summit Partners. Its last round of funding was held last month when it raised $231 million in private equity investment from Warburg Pincus at an undisclosed valuation. An earlier round was held in September 2015 when it raised $38 million from Pentland Group and funds affiliated with Summit Partners and Sands Capital Ventures at an undisclosed valuation as well. The latest funding will be used to continue the development of its products. Given the $100 million plus revenue, the company’s valuation is easily in Unicorn territory.
Like I said earlier, this is a company that is catering to a market need through good products and sound business sense. I believe that company is already a Unicorn.
More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion Dollar Unicorns. The term Unicorn was coined in a TechCrunch article by Aileen Lee of Cowboy Ventures.