The Daily Startup: Aledade Raises $30M for Medical-Practice Software

This post is by Mike Billings from Venture Capital Dispatch

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With the passage of federal health-care laws, medical practices have started using software to better track the health outcomes of their patients–a metric by which they are reimbursed by insurance companies rather than the volume of patients trearted. The startup Aledade has picked up $30 million in additional funding for software to better track patients’ health, Timothy Hay reports for Dow Jones VentureWire. Other companies, such as Evolent Health, have focused on large medical practices and hospitals. Aledade’s focus is on smaller medical practices. Investors in company’s Series B round are new investor Arch Venture Partners and returning investor Venrock.

ALSO IN TODAY’S VENTUREWIRE (subscription required):

Windham Venture Partners plans to seek $75 million for its second health-care fund, another step in the growth of a firm that originally formed to invest its founders’ own capital. Windham intends to hold a first closing year, General Partner and Chief Executive Adam Fine said. The pool, likely to be called Windham Venture PartnersII LP, would be a leap from the just under $40 million raised for Windham’s first fund.

Arcturus BioCloud, a startup offering certain genetics laboratory services via the cloud, has closed on $100,000 in a bid to raise $1.5 million in Series A funding. The funding was provided by 500 Startups, Chief Executive Jaime Sotomayor said. Arcturus has also secured commitments worth $120,000 from IndieBio, which is a synthetic biology accelerator program operated by SOSventures.

PolicyGenius secured $5.3 million in Series A funds for its service that offers an online process where it guides consumers to figure out what kind of insurance they need and offers them options. Karlin Ventures led the round, joined by Susa Ventures and the venture arms of two major insurers, Transamerica and AXA.

IPO News: ProNAi Therapeutics, which is developing nucleic acid therapies for cancer and other diseases, and Antidepressant drug maker Cerecor both publicly filed for IPOs.

(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit, scroll to the bottom and click “try for free.”)


Ellen Pao Fires Back at Kleiner Perkins in Court Costs War of Words. Former Kleiner Perkins Caufield & Byers junior partner Ellen Pao fired back at the venture firm in a legal filing, saying Kleiner Perkins improperly publicized confidential negotiations and asking her to pay unreasonable legal costs, The Wall Street Journal’s Jeff Elder reports. The filing is the latest since Ms. Pao lost her gender-discrimination in the case. She has filed paperwork to appeal the decision.

No Team? No Idea? No Problem! This VC Will Fund Your Startup Anyway. Early-stage startups can pick up seed funding or go through accelerators, both of which can help burgeoning companies in their development. But most of these programs and funding are for startups that have ideas and teams in place. For would-be entrepreneurs who have an idea, but no team, there are “pre-accelerators,” which will give funding for “pre-idea, pre-team” people, the WSJ’s Ania Nussbaum reports. One example is Entrepreneur First, which invests in individuals who may have ideas, but who may not know how to move forward with building a company.

Ellen Pao: Half of All VCs Should Be Women. Ellen Pao, who lost her gender-discrimination lawsuit against Kleiner Perkins Caufield & Byers earlier this year (click here to find out how same “difficult” health-related lawsuits result in success, instead), said that half of venture investors should be women to “reflect the world that we are in,” the Silicon Valley Business Journal reported. Ms. Pao, speaking at a 500 Startups event in San Francisco, said she is encouraged by women-led venture firms, but added, “It’s weird that women have to start their own firms to be successful.”

Leap Transit Buses Appear on Auction Site. The venture-backed Leap Transit, which provided a high-end transit option in San Francisco, has three of its buses on an auction site, the tech news website Fusion reported. Leap announced on its Facebook page on May 19 that it was halting its service to deal with regulatory issues. Fusion said that Leap’s CEO didn’t respond to emails and calls requesting comment about the buses on the auction site.

Write to Mike Billings at Follow him on Twitter at @mbillings