LaunchPoint Receives $3.5M in Series B Funding

LaunchPoint, which was just established in 2008, has already been seeing impressive growth in the past couple of years. And it looks like they’ll be experiencing more of this exciting progress because just last January, they have acquired $3.5 million for their Series B funding.

This particular round of financing was participated in by both new and old investors (from their Series A funding).

LaunchPoint’s Director of Marketing Michelle Smyth shared more about the company and their recent success in this e-interview with Lead411:

Who are your competitors and how are you different from them?

We have a range of competitors, with none doing exactly what we do.  On the healthcare cost management side of our business (Discovery Health Partners), we compete with companies that provide services as wide ranging as healthcare subrogation, dependent eligibility verification, and coordination of benefits.  On the consulting side of our business (Ajilitee), we compete with major global consultancies – but in addition to traditional consulting, we also host and maintain business solutions in our proprietary cloud platform and can implement quickly due to our agile approach.

What percentage of your marketing budget are spent on the following?

A.      Advertising – 15%
B.      Social Media Marketing – 0%
C.      SEO – 10%
D.      PR – 5%
E.      Direct Marketing – This encompasses email campaigns, trade shows and webinars for us. 70%

What marketing tactic has given you the highest ROI?  What percentage ROI do you get back on this?

Direct Marketing initiatives such as email campaigns and trade shows are the most effective for lead generation, which is why we allocate most of our budget in these areas. Trade shows are a much larger investment, but can be very rewarding when the right audience is reached because of the 1:1 personal interaction at these events.
What do you plan to spend your new funding on?  Product development?  Marketing?

We will allocate our latest funding toward new customer onboarding and product development (specifically, continued software-as-a-service (SaaS) solution development).

How many employees do you have?

More than 40.
When were you founded?

LaunchPoint was founded in 2008, along with Discovery Health Partners, a division that focuses on healthcare cost management through analytics-driven subrogation, coordination of benefits, and dependent eligibility verification solutions. A second division, Ajilitee – a consulting and services firm that specializes in agile analytics, business intelligence, cloud enablement and information management – was founded in 2010.

How much did your revenue increase (if any) this year over last year?

Revenue grew by 10x from 2010 to 2011.

Want to read more about their recent funding? You may read their press release here.

About Christine Guinto

Christine Guinto is our part-time writer for the Lead411 Blog. She specializes in our funding news. You can contact her at christine [at] Christine Amos on Google+!