Last updated on July 2nd, 2019 at 09:04 pm
Milwaukee-based health pricing startup Access HealthNet LLC is raising another $3 million round to finance its swift growth.
The company just completed a $3.5 million series A round on June 19, but is already going back to many of the same investors for another raise.
“We’re growing very rapidly, so we’re adding people, we’re building our network of providers. It just takes time and money to do that, so that is the reason” to raise another round so soon, said Mark Wiesman, chief operating officer at Access HealthNet.
Access HealthNet has about 40 employees, about half of whom were hired this year. The company recently had to move to a larger headquarters at 105 W. Michigan St. to make room for its expanding workforce.
The startup coordinates between payers and providers to bundle health care services and offer each for a predetermined flat fee. It’s an increasingly popular solution in an age of escalating health care costs and complex reimbursement structures.
The $3 million will be used for expansion and operating capital, Wiesman said.
“We’re expanding into the upper Midwest/Great Lakes area, so we’re building out additional providers, adding staff to accommodate the new clients and the new providers coming on board,” Wiesman said. “We’ve also launched a worker’s compensation product line. Our first client is coming live on that right now. We’re adding resources to accommodate that, as well.”
So far, about $2 million has been raised from approximately 12 investors, he said. The hope is to close the round by the end of November.
“Much of the money is coming from the same investor group that’s invested previously. It’s primarily large individual investors,” he said.
Wiesman declined to name the individual investors. Wisconsin Super Angel Fund, the lead investor in the company’s first round, will make another sidecar investment in this round, he said.
SEC filings for portions of the new funding list as directors WSAF partners John Torinus and Thomas Schuster, and also Howard Frankenthal, president of Mequon-based food distributor Frankenthal International Ltd. and Michael Bamberger, managing partner at Milwaukee law firm Beck, Chaet, Bamberger & Polsky S.C.
Access HealthNet has five open positions, and plans to undertake another hiring push in early 2018 as a number of new clients come on board with the Jan. 1 start of many plan years. The company does not yet have an exact number of positions it will fill, which range from account executives to high level sales roles.
The company has about 20 employer clients and has signed on about 4,500 health care provider locations, with another 100 providers in the pipeline, Wiesman said.