Hard work does pay off for HIT Application Solutions – they have recently acquired $2.75 million USD in Series A funding. They will be looking at further development of their flagship product Notifi, as well as the ramp-up of sales and marketing efforts.
The company’s President and CEO, Brian Biddulph-Krentar, shares more about this great news in this recent e-interview with Lead411:
Who are your competitors and how are you different from them?
Our main competitors are Nuance, Extension, Perfectserve, Amcom, Emergin and Connexall IMO. Simplicity of configurability make us stand out. In addition, most of these vendors do some type of communication while our goal is to handle all communications within a hospital while also bridging the communication gap between hospitals and community physicians.
What percentage of your marketing budget are spent on the
A. Advertising – 35%
B. Social Media Marketing – 2.5%
C. SEO – 2.5%
D. PR -5%
E. Direct Marketing – 40%
F. Other -15%
What marketing tactic has given you the highest ROI? What
percentage ROI do you get back on this?
Email blasts and telesales have shown us a dramatic increase in website activity and pipeline growth. We also just went through phase I of a website design with much more to come. We look forward to our expanded ability to market our product. This will include expanding our sales team and increasing our presence at tradeshows. We now have a greater ability to let the industry know who HIT Application Solutions is and what Notifi can do, which is to Notifi the right people about important health information when they need it and the way they want to receive it.
What do you plan to spend your new funding on? Product
Our initial increase in spending will be on adding sales resources and marketing. We also plan to invest in product development, implementation, and support resources. Other than an initial investment in our sales and marketing division, additional spending will primarily be dictated by sales traction.
If this is your first round of financing and you’re the CEO, how many hours did you put into working on getting your financing? Was that taking up the most of your day?
It is hard to count the hours, but a lot of my brain power over the past 2 years has been spent on finding funding, whether $10,000 here or there or this Series A funding. Even when I was not specifically working on this task, it had me distracted and stressed. I greatly look forward to being able to now focus on helping customers achieve their communication goals through the use of Notifi. Making payroll was a struggle each month, but our employees were great and showed amazing flexibility. Our management team always found a way out of the hole. I cannot wait to grow our business for the sake of our employees and investors.
If you are the CEO, what are your biggest challenges?
One of our biggest challenges is now solved. Now it is my job to prove that our solution will provide a substantial ROI for our customers as well as solve the communication challenges that every hospital faces. An electronic medical record (EMR) does little to improve communication, in fact these systems actual worsen the problem by creating extraneous alerts. Notifi can bolt on to an EMR, filter messages, organize those messages, and prioritize and distribute them based on the rules the recipient sets. Additionally Notifi has closed-loop capabilities allowing the sender to know that the message was received and acknowledged.
How many employees do you have?
We have 19 employees today with more hiring to occur soon. By the end of 2013 we plan to have at least 35 employees.
When were you founded?
HIT was founded in late 2004 as a services company. We provided consulting solutions to imaging departments across the US and Canada (and recently Australia). In 2008 we began to develop the Notifi software solution based on the common issue we heard at all clients. This issue was that there was not a good way to communicate critical results between hospitals and referring physicians. It is actually a funny story. Myself and three consultants were watching the NCAA tournament in Houston and we were exchanging ideas. One of the consultants mentioned how often he is asked how other clients communicate critical results. By the end of the weekend we had an agreement to add a new dimension to HIT.
How much did you revenue increase(if any) this year over last year?
2012 should be about a 70% increase in revenue over 2011. More importantly there is a significant shift occurring from consulting revenue to recurring software revenue.
Want to read more on their recent funding? You can read their press release here.