PillPack Picks Up Pace in Health IT With $50M Deal Led by CRV

Xconomy Boston — 

It’s no surprise that the latest tech startup to go big in Boston is in health IT. The sector has been burgeoning locally and will probably see more big funding deals this year.

PillPack, an online pharmacy and medication management company, said Wednesday that it has raised $50 million in a financing round led by new investor CRV. Accel Partners, Atlas Venture (the tech fund), Menlo Ventures, and Sherpa Ventures also participated in the round, which brings PillPack’s total raised to $62 million.

PillPack, which is based in Manchester, NH, and Somerville, MA, has seen rapid growth since launching its service in February 2014. The company ships pre-sorted prescriptions, vitamins, and over-the-counter medications in individual time-stamped packs to help customers take their meds properly; it also manages customers’ refills by coordinating with their doctors and insurance providers.

Founder and CEO TJ Parker said the new money will help PillPack expand its physical footprint across the U.S. That will include retail pharmacies and a lot of new hires. PillPack’s service is now available in 47 states, and the company says it accepts most prescription drug insurance plans.

The company’s strategy fits with major themes in health IT: personalization of services, simpler and more efficient user interfaces, and collaborative care, all through modern technology (and a lot of hard work). Other local companies to watch in the sector include American Well, Cohealo, CoPatient, Wellframe, Par8o, and CarePort Health.

PillPack’s previous investors include Techstars, Founder Collective, High Line Venture Partners, QueensBridge Venture Partners, Andy Palmer, and David Tisch.