Practice Fusion recently shared some great news – they have acquired Series C round of financing amounting to $34 million. This particular round of funding was led by Artis Ventures. Other enthusiastic participants include Band of Angels, SV Angel, Barton Asset Management, Glynn Capital, and Felicis Ventures among others.
The company’s CEO and Founder Ryan Howard tells us more about the company and their recent funding in this e-interview with Lead411:
Who are your competitors and how are you different from them?
The EHR market is saturated with hundreds of health IT vendors, but none approach the service, community size and affordability offered by Practice Fusion.
EHR vendors including Allscripts, eClinicalWorks, athenahealth, NextGen, Amazing Charts and Greenway compete for the small ambulatory practice space with systems in the $6-$12,000/year introductory price range. More competitive details are available online at www.practicefusion.com/compare
What percentage of your marketing budget are spent on the following?
We do not disclose this information. Our marketing efforts are heavily focused on PR, SEO and word of mouth.
What marketing tactic has given you the highest ROI? What percentage ROI do you get back on this?
Public Relations, SEO and word of mouth have always proven the most valuable for us. Word of mouth is incredibly powerful; analysis paralysis is a big factor right now because there are just so many EHR vendors competing in the sector. And it is so difficult to get price quotes and demos from most of them – it’s a confusing process for buyers, especially the majority who are looking at health IT for the first time. We encourage our community to reach out to other doctors within our network to get feedback.
What do you plan to spend your new funding on? Product development? Marketing?
This latest investment will accelerate the launch of our patient strategy as well as the company’s API platform and allow us to continue to dominate the market.
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?
A 24/7 work week is a major challenge of running my own company. Making your own schedule is typically considered a career luxury, but in a start-up environment the intensity of work that needs to be accomplished in a limited timeframe requires relentless and unfettered focus. The last few years have been all about this determination which is how our latest round of funding came to fruition.
If you are the CEO, what are your biggest challenges?
Hiring remains one of the biggest challenges. I still meet with every hire. The wrong hire will be a terrorist in your organization and I don’t hire anyone who doesn’t understand our mission. It’s not sustainable long-term. We don’t compromise that standard ever. And it’s incredibly challenging.
How many employees do you have?
When were you founded?
How much did you revenue increase(if any) this year over last year?
Practice Fusion does not disclose exact revenue details, but notes that in Q1 2012 revenue generation was comfortably in the seven figure range, an increase of more than 500% from the same quarter in 2011.
Want to read more about this funding news? Check their press release here.