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Enclarity Secures Series C Funding from Bain Capital Ventures and Ignition Partners
Signaling continued confidence in the solutions Enclarity brings to market, venture capital backing will extend Enclarity’s efforts to bring efficiency to the healthcare system
ALISO VIEJO, Calif., March 10, 2009 – Enclarity Inc., a leading healthcare information solutions company, has secured a Series C round of funding from Bain Capital Ventures and Ignition Partners. Enclarity helps the top healthcare plans in the country eliminate inefficiencies by leveraging its innovative information solutions to ensure correct, current and comprehensive healthcare provider data. The company will use the $5.5 million infusion to further its research and development initiatives, and create solutions that will relieve the data inaccuracies and redundancies that drive up operational costs.
“We are pleased that Bain Capital Ventures and Ignition Partners have continued confidence in our solutions,” said Sean Downs, chief executive officer, Enclarity. “We just closed our biggest quarter ever and now have 40 of the largest health plans in the country on our client roster providing recurring revenue. The need for data standardization is greater than ever before. Without it, health insurance payers will continue to struggle with out-of-date, incorrect records that result in overpayment and higher-than-necessary claims payment expenditures. Our solutions already are making an impact on the U.S. healthcare system, and now we can bolster our development efforts to help reduce the cost of health insurance.”
The healthcare system in the United States is being impacted on several fronts. As a result of President Barack Obama’s commitment to provide coverage for all Americans, healthcare payers likely will experience reduced Medicare and Medicaid reimbursement as well as higher scrutinization of its fee structure and business practices. At the same time, the increase in private health spending is forecasted to slip to a 15-year low of 3.9 percent (Centers for Medicare and Medicaid Services) as a result of the U.S. recession.
Enclarity provides healthcare information solutions that healthcare payers, as well as pharmaceutical and medical device companies. Powered by Enclarity, its clients can improve the quality of their information about healthcare providers (including doctors, dentists, hospitals, outpatient centers, pharmacies and other facilities) in order to streamline claims processing, reduce errors, improve patient and provider relations and increase overall efficiency. Such improvements remove unnecessary costs and positively impact the customer’s bottom line.
Bain Capital Ventures is the Boston-based venture capital arm of Bain Capital, whose affiliates manage approximately $75 billion in assets. Bain Capital, founded in 1984, has invested in more than 230 companies, including HCA, Gartner Group and Staples. Bain Capital Ventures was founded in 2001 and has more than $1 billion of assets under management.
“Since 2006, when we made our original investment in Enclarity, many of the largest healthcare payers and the most discriminating healthcare data companies have adopted its solutions and generated outstanding results,” said Jeffrey Crisan, managing director, Bain Capital Ventures. “We are extremely pleased with Enclarity’s progress, and we remain strong supporters of Enclarity.”
Ignition Partners, a Seattle-based venture capital firm, manages more than $2 billion of assets. Founded in 1999, the company has invested in more than 60 companies, including Seamobile, Docusign and Pure Networks (acquired by Cisco).
“This investment underscores our increased confidence in Enclarity’s ability to understand the needs of healthcare payers and produce innovative solutions to make the industry more efficient,” said John Zagula, general partner, Ignition Partners. “Our continued financial support of Enclarity is proof positive that even in this economic environment it’s possible to succeed.”
For more information about Enclarity’s solutions, visit www.enclarity.com.
Enclarity® solves healthcare’s provider information problem. The company delivers correct, current and comprehensive provider information solutions by blending thousands of data sources, advanced analytics and healthcare expertise. As a result, its clients improve results in many areas, including claims processing, provider directories and network analysis. Named one of the Top 100 private technology companies in North America by Red Herring magazine and awarded the Global Healthcare Information Technology Excellence Award by Frost & Sullivan, Enclarity is headquartered in Aliso Viejo, Calif. For more information, visit www.enclarity.com.
About Bain Capital Ventures
Bain Capital Ventures (www.baincapitalventures.com) is the Boston-based venture capital arm of Bain Capital, whose affiliates manage approximately $75 billion of assets. Founded in 1984, Bain Capital and its affiliates have made more than 250 investments with such notable successes as Doubleclick, Gartner Group and Staples. Our history of investing in early stage companies also dates back to 1984, having made over 125 venture-stage investments since inception. In 2001, Bain Capital Ventures was formed as a separate arm of Bain Capital to focus exclusively on growth investments. Bain Capital Ventures currently has approximately $1 billion in assets under management.
About Ignition Partners
Ignition Partners, (www.ignitionpartners.com) is a premier private investment group with offices in Bellevue, Washington and Shanghai, China. Ignition Partners' affiliated family of funds includes Ignition Ventures and Ignition Growth Capital in the U.S. and Qiming Ventures in China. The investment group's three categories of funds – early stage venture, growth capital and China ventures – brings together an unparalleled combination of domain focus, functional expertise and global operational experience with partners from leadership positions at Microsoft, McCaw Cellular Communications, AT&T Wireless, Cisco, Starbucks and other industry leaders.