Escalate Capital Provides Kareo Mezz Financing
Kareo announced it received $15 million in mezzanine debt from Escalate Capital Partners. In 2014, Kareo secured a total of $47 million in funding, reinforcing the company’s growth.
The latest financing brings Kareo’s total capital raised to $90 million. New investor Escalate Capital Partners joins Kareo’s group of investors which also include OpenView Venture Partners, Greenspring Associates, Stripes Group, Silicon Valley Bank and Western Technology Investments.
“The shift toward consumer-driven care is continuing to gain momentum and we believe that independent practices are uniquely positioned to benefit from this trend and provide the most appropriate and highest quality care to patients. We are delighted to have the backing and confidence of Escalate as we further enhance our products to better support small practices,” says Dan Rodrigues, founder and CEO of Kareo.
Kareo’s mission was affirmed by its significant growth. The company has been consistently recognized as one of the fastest-growing private companies in the U.S., realizing a 552% increase in revenue over the past three years. The company now serves more than 25,000 healthcare providers with its award-winning EHR, practice management and billing services platform, and is adding more than 500 provider customers per month.
“Kareo’s unique business model and market-leading solutions are changing the game in healthcare IT,” says Ross Cockrell, managing director at Escalate Capital Partners. “There is considerable market opportunity for Kareo as independent physicians provide the majority of patient care in the United States. And with increasing focus on fee-for-quality reimbursement models, this trend will likely continue. Kareo is well poised to sustain its growth record and we are excited to be a part of its continued success.”
Kareo is a cloud-based medical office software and services platform designed for small practices.