Initiate Systems Inc., a Chicago-based provider of master data management solutions for the exchange of health information, has raised $5 million from BlueCross BlueShield Venture Partners.
BlueCross BlueShield Venture Partners, L.P., a corporate venture fund that is an independent licensee of the Blue Cross and Blue Shield Association, and Sandbox Industries announced today a $5-million investment in Initiate Systems, Inc., a leader in master data management (MDM) solutions for health information exchange.
BlueCross BlueShield Venture Partners is a newly formed $116-million fund to which 11 independent Blue Cross and/or Blue Shield companies have committed capital. The fund invests in technologies, products, and services in the U.S. healthcare industry that promote efficiency, lower costs, and improve options for consumers. In a unique partnership, the fund is managed jointly by representatives from the Association, the participating Blue Plans, and Sandbox Industries, a Chicago-based venture capital firm.
Paul Brown, Managing Director of BlueCross BlueShield Ventures, Inc., said: “We are pleased to launch this fund, which enables BlueCross BlueShield Venture Partners to be at the forefront of technological innovation in healthcare. We selected Initiate Systems as our inaugural investment because Initiate has proven through over 100 healthcare implementations that its software enables hospitals and independent delivery networks to deliver safe, responsive patient care while increasing productivity and cost effectiveness.”
The first investment the fund has made is in Initiate Systems. Initiate enables organizations to leverage and share critical data assets. Initiate® software enables strategic initiatives such as electronic health records (EHR) and clinical portals that help improve efficiencies, increase patient and provider satisfaction, reduce errors that result from poor data quality, and create an interoperable environment that allows healthcare organizations to better serve their communities. It can also help healthcare organizations, including payers and providers, save millions of dollars in administrative costs.
“Initiate Systems is honored to be the first investment made by BlueCross BlueShield Venture Partners,” said Bill Conroy, President and CEO of Initiate Systems. “The Blue Cross and Blue Shield brand is among the most respected and recognized in the healthcare industry, which is why we feel this investment demonstrates confidence in our company as a market leader and our software as a proven, enabling technology for health information exchange.”
“Initiate Systems’ impressive track record of success and long-standing market leadership made the company a natural choice for BlueCross BlueShield Venture Partners’ first investment in healthcare technology,” Brown added.
About BlueCross BlueShield Venture Fund
BlueCross BlueShield Venture Partners, L.P. is a $116 million corporate venture fund, sponsored by the BlueCross and BlueShield Association, a national federation of 39 independent, community-based and locally operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for more than 102 million individuals – one-in-three Americans. The fund’s objective is to invest in promising emerging companies of strategic relevance to the 11 Blue Cross and/or Blue Shield Plans that have made voluntary capital commitments.
About Sandbox Industries
Sandbox Industries is an early stage venture capital firm located in Chicago, Ill., Sandbox is the exclusive fund manager of BlueCross BlueShield Venture Partners. Founded in 2003, Sandbox Industries is managed by leaders in identifying and commercializing novel ideas and technologies. The Sandbox Team utilizes its network and unique combination of operational, strategic, and financial expertise to provide access to customers, capital, and connections when building market-leading companies.
About Initiate Systems
Initiate Systems, Inc. enables organizations to strategically leverage and share critical data assets. Its master data management (MDM) software and experience as an information exchange leader provide organizations with complete, accurate and real-time views of data spread across multiple systems or databases, even outside the firewall. This allows
companies to unlock the value of their data assets for competitive advantages or operational improvements. Initiate Systems operates globally through its subsidiaries, with corporate headquarters in Chicago and offices across the U.S., and Toronto, London and Sydney. For more information, visit www.InitiateSystems.com.