Posted on Thursday, Oct 15th 2015
MarketsandMarkets report on the global medical automation market estimated the industry to be worth $43.2 billion back in 2013. The industry is expected to grow 9% annually over the five year period to be worth $66.92 billion by 2018. Modernizing Medicine, an upcoming player in this market, offers impressive products that are sure to make them a Billion Dollar Unicorn soon enough.
Modernizing Medicine’s Offerings
Boca Raton-based Modernizing Medicine was founded in 2010 by serial tech entrepreneur, Dan Cane and a visionary dermatologist, Michael Sherling. They were disgruntled with the state of technology in the healthcare field. They realized that basic technology phenomenon such as cloud computing, touchscreen capabilities, personalization, and adaptive learning had not reached the healthcare sector. The two decided to set up a company that would introduce some of these “
disruptive” technologies in the space. They began by building a system for clinical documentation in the surgical specialty market. They wanted to customize their technological capabilities to the fields of medicine. Hence, instead of focusing on general practice, they built products for specialists such as dermatology. They went on to build a cloud-based, specialty-focused, adaptive learning and a touch-based system on the iPad.
Today, their system helps physicians increase efficiencies in their medical practices. Their flagship solution, the
Electronic Medical Assistant (EMA) is designed to act as the practitioner’s assistant by trying to predict the doctor’s next move. The cloud-based offering adapts to each individual doctor’s unique style of practice and remembers preferences. It helps generate examination notes and billing codes automatically.
Modernizing Medicine may have started with dermatology, but it has diversified into several other medical specialties since. Their products cater to ophthalmology, orthopedics, otolaryngology, plastic surgery, gastroenterology, urology, and rheumatology. The application is accessible across multiple platforms including the native iPad and a web-enabled Mac or PC.
Modernizing Medicine’s Financials
Besides being efficient, Modernizing Medicine is also a more economical option for physicians. Since its system is cloud-based, the company operates on a monthly subscription model. Its latest pricing models are not known, but when I spoke with Dan a few years ago, he had talked about a monthly fee of $650 for access to their system. Being a privately held company, Modernizing Medicine does not disclose detailed financials as well. Back in 2013, it
was trending at annual revenues of $20 million and were expected to turn profitable during the year. Earlier this month, Dan revealed that they were targeting revenues of $100 million by next year.
Modernizing Medicine has been venture funded so far with $101.6 million in investments from investors including IBM, Pentland Group, Sands Capital Ventures, Silicon Valley Bank and Summit Partners. Their last round of funding was held last month when they raised $38 million from Pentland Group and funds affiliated with Summit Partners and Sands Capital Ventures at an undisclosed valuation. Modernizing Medicine is also a very successful illustration of equity crowdfunding from customers. The company was searching for funding in 2010, when, due to the downturn most investors were very cautious. When
they approached their beta customers for investor due diligence, the beta customers showed interest in funding the business themselves. Attracted by their suggestion, Modernizing Medicine let their customers become equity investors in their company and were able to raise $3.1 million through equity crowdfunding.
Modernizing Medicine may not have yet knocked on the doors of the Billion Dollar Unicorn club, but with stipulations like those of the Affordable Healthcare Act in place, I believe that the healthcare industry will greatly benefit from the innovative solutions such as those offered by them. I am confident that they are the next Unicorn in the making, and given their strong fundamentals they will reach their deserved valuation, albeit without rushing to do so using unsavory tactics.
Earlier this month, Dan joined me at a
1M/1M Roundtable. You can listen to the recording here.
More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion Dollar Unicorns. Unicorns will also be discussed with some special guests during our 1M/1M Roundtable programs over the next few weeks. To be a part of the conversation, please register here. The term Unicorn was coined in a TechCrunch article by Aileen Lee of Cowboy Ventures. This segment is a part in the series : Billion Dollar Unicorns
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