Catalyze Snags $4M To Grow Cloud Computing Business For Healthcare
Catalyze, a Madison, WI-based provider of cloud hosting and other services for the healthcare industry, has raised $4 million from investors, a new SEC filing shows.
Catalyze went through Gener8tor’s Milwaukee accelerator program in summer 2013 and raised a $2 million Series A round three months later. That round was led by Baird Capital’s venture capital group, Arthur Ventures of Fargo, ND, and Chicago Ventures, with participation from the State of Wisconsin Investment Board, Gener8tor, Oshkosh, WI-based Angels on the Water, and individual investors, including Mark Bakken and Don Layden.
Catalyze officials couldn’t be immediately reached Thursday, but Layden told Xconomy that the startup’s latest funding round was backed by existing investors, including himself. Layden sits on Catalyze’s board and is also a Baird venture partner.
“Catalyze continues to perform extremely well in the marketplace,” Layden said. “[Its] solution has been well-received, and [it’s] been highly efficient with the capital that was provided after [its] launch.”
Catalyze was co-founded by Travis Good, a medical doctor who also holds an MBA and a master’s degree in information sciences. Good has worked as a security systems analyst with PricewaterhouseCoopers and Booz Allen Hamilton.
His company provides healthcare app developers with servers and databases that meet HIPAA requirements for protecting patient data. “Never again should a healthcare developer worry about the plumbing of compliance,” Catalyze’s website says. “Just as Amazon and Rackspace have commoditized cloud computing, at Catalyze we aspire to commoditize health technology infrastructure.”
Its products include an API designed for healthcare apps, including those that work with Apple’s HealthKit and Google Fit, Catalyze’s website says.
The company’s customers include software companies big and small, as well as insurers and healthcare providers.
The new money will go toward product development and sales and marketing efforts, Layden says. Catalyze is also hiring, according to its website.
Layden acknowledges that the cloud computing market for healthcare is getting more crowded, but he thinks Catalyze jumped in early enough and has the high-quality products and people needed to be successful.
“The team at Catalyze has a high degree of credibility in the end markets that we’re selling to,” Layden says. “The team has been able to develop a product that matches that level of credibility in the marketplace.”