Veda raised $45M to expand its AI-based health data platform

Following a massive year for healthcare organizations, data automation company veda closed on $45 million in new investment funding this week. The Series B round was led by Oak HC/FT, a Connecticut investment fund focused on fintech and healthcare.

The company, which is led by D.C.-based CEO Meghan Gaffney, developed a platform using AI and machine learning to increase accuracy of health provider directories. With the fresh funds, Gaffney said that the Madison, Wisconsin-based company will be expanding its go-to-market and customer success teams, as well as building some new modules for the platform. With the investment, it will be adding 45 location-agnostic roles, doubling the team’s headcount to 90. (See open roles here)

“We realized we needed a sophisticated investor and partner to help us get through this next growth phase of the company,” Gaffney told Technical.ly.

The raise comes on the coattails of a $13.5 million-strong, multi-round 2020 for the company. It has now raised $58.5 million raised since its founding. And, according to veda, it follows a trend of rapid growth. Gaffney reported a 20x revenue increase over the last 18 months, and the company expects its customer base of health plans and partners to increase sevenfold by Q4 of 2022.

This funding, Gaffney added, will let the company take that momentum and bring a product with a narrow focus into a broad market of opportunities.

“Making that transition from a manual process to automation is really sometimes quite a challenge, so we want our customers to have the same level of service that they’ve experienced from us as a small company as we grow,” Gaffney said.

On top of the company growth, the funding will also be an asset as veda gears up its product for the January 1, 2022, start date for the No Surprises Act, passed in July. The law, which is designed to prevent patients from receiving surprise medical bills, includes a mandate that requires all provider directory updates be processed in under 48 hours. veda’s platform, Gaffney said, can reduce the turnaround time to 24 hours using AI.

And although it’s a tech company first and foremost, she said that veda’s ability to help meet the terms of the ruling helps fulfil one of the overall goals of the company.

“One of the things that we really care about, in terms of our go-to-market strategy, is telling a story about how automation can be a really positive part of healthcare modernization, not just for health plans and providers but also for patients,” Gaffney said. “We can really make sure more of their premium dollars get to the things that get them healthy and keep them well. And that’s what’s really important at the end of the day as a technology company, is to be part of that solution.”