Radianse Announces Series A Investment Co-led by HLM Venture Partners and Partech International; Joined by Ascension Health Ventures
Indoor positioning solutions for healthcare shown to improve patient throughput, reduce asset shrinkage and increase safety
Lawrence, MA, July 6, 2004 - The potential for active radio frequency identification (RFID) with real time location to make an impact on healthcare costs, safety and efficiency received a major boost today as Radianse, Inc. announced the completion of a $9 million Series A financing round. The investment was co-led by new investors HLM Venture Partners and Partech International, each committing $3.25 million to the round; Ascension Health Ventures, also a new investor, is providing the balance.
Successfully launched, new customer installations scheduled Radianse closed its first round of funding in November 2002 and has focused efforts and spending for the past 18 months on the development and successful launch of its indoor positioning solutions (IPS) for healthcare applications. Already in leading institutions such as Massachusetts General Hospital in Boston, Radianse expects many additional installations to be completed by the end of 2004. The company also has secured development and distribution agreements with healthcare solutions providers and medical device companies who are integrating Radianse technology into their software applications and equipment.
Radianse plans to use the new funding to expand sales, support and manufacturing and to increase awareness of indoor positioning for healthcare.
"Radianse has created a versatile and intelligent location solution that has enormous potential for cost savings, improvement in patient care, and revenue enhancements for hospitals," said Albert L.Wiegman, II, General Partner at HLM, who will join the company's board of directors. "At HLM we are delighted to partner with their management team and leverage our industry contacts. With cost savings and patient safety of paramount importance to all healthcare providers, we are confident Radianse will have an impact on the marketplace."
"The Radianse combination of active-RFID and its patent-pending location technology brings a compelling solution to the healthcare industry, increasing quality and service while reducing management costs," said Thomas G. McKinley, Managing Partner, Partech International. "We're excited to support the company in growing its business to meet the market demand."
"The Radianse solution has potential for rapid adoption in healthcare as hospitals seek opportunities to provide a safe care environment and improve efficiencies. During our diligence, several Ascension Health hospitals expressed an interest in Radianse and its unique approach to indoor positioning." said Matt Hermann, Director of Strategic Health Venture Investing, Ascension Health Ventures. "The Radianse approach breaks through the barriers of cost and accuracy that have plagued other location technologies. We're very excited to participate in the momentum that Radianse has going."
"We are gratified to have the strategic support and financial backing of these companies," said Michael Dempsey, Radianse president and chief executive officer. "They have a deep knowledge base of healthcare and clearly recognize our ability to change how the market views indoor positioning and uses it to improve healthcare."
About indoor positioning
An IPS provides the indoor corollary to the global positioning system (GPS) - which has achieved tremendous success as a commercial technology in the past five years as receivers have become less costly and complex. A Radianse IPS affordably, accurately and easily identifies where people and objects are located. Reducing cost and complexity and ensuring accuracy are central to IPS becoming as successful as GPS, particularly in healthcare where expensive systems and inconsistent results often rendered traditional location solutions impractical.
About HLM Venture Partners
HLM provides venture capital to emerging companies focused on life sciences and medical devices, health care information technology and health care services. HLM supports entrepreneurs as they turn innovative ideas into market-leading businesses, offering guidance on financial structuring, resource allocation and deployment, strategic planning, strategic introductions, and recruitment. www.hlm.net
Founded in 1982, Partech International is a venture capital firm with offices in San Francisco, Paris and Tel Aviv. The firm manages approximately $850 million in early-stage venture, late-stage venture and public investments. Among Partech's portfolio companies are Ascend, Alvarion, Business Objects, Cadence, Digital Island, Informatica, IP Unity, ISDnet, Mediapps, Peregrine, Vignette, VISICU and VeriFone. www.partechvc.com
About Ascension Health Ventures
Ascension Health Ventures, LLC was launched in 2001 as a wholly-owned subsidiary of Ascension Health. AHV provides strategic venture funding to companies that offer innovative new products, services and technologies that will help Ascension Health's ministries serve their communities and transform the future of healthcare. AHV considers investment opportunities that offer operational, clinical or financial benefits in priority areas for Ascension Health's hospitals and other facilities. www.ascensionhealthventures.org
About Ascension Health
Ascension Health is a Catholic health ministry dedicated to improving access and delivering quality care particularly to those persons who are poor and vulnerable. This commitment is demonstrated by the $537 million provided for community benefit and care of the poor last year. With national offices based in St. Louis, Missouri and assets of $11 billion, this healthcare leader is the nation's largest nonprofit health system and has more than 100,000 associates working in health facilities in 20 states and the District of Columbia. www.ascensionhealth.org
Radianse provides intelligent solutions for healthcare by automatically collecting and processing real time location data, movement history, associations and relationship information on high-value assets, including equipment, patients and staff. Our patented algorithms and advanced software applications help optimize business processes, enhance patient throughput, reduce costs and improve operational efficiency within healthcare. Radianse products have been installed in more than 75 hospitals.