Precision surgery software company Caresyntax secured $180 million in a series C extension funding round.
The financing comprises $80 million of equity and up to $100 million of growth debt facility, the company announced Thursday.
Investors in the funding round include Optum Ventures, the venture arm of UnitedHealth Group's Optum, BlackRock Innovation Capital, Symbiotic Capital, MTIP AG, BIONIQ Capital, PFM Health Sciences, Pictet Alternative Advisors, surgical.ai, Aescuvest, Cure Capital, Relyens Group, Vesalius Biocapital, Lauxera Capital, Plug and Play Growth Fund and ProAssurance Corp.
Caresyntax, one of Fierce Healthcare's Fierce 15 of 2024, bills itself as the world-leading developer of surgical intelligence and automation technologies. It empowers surgeons and providers to improve patient outcomes, enhance operational efficiency and increase profitability with data-driven surgery using artificial intelligence, automation and operating room analytics.
The company, which launched 10 years ago, says it serves over 30,000 surgical professionals across more than 3,000 operating rooms worldwide. Its operations span the U.S., Europe, the Middle East and Africa (EMEA).
The company also claims that it leverages tech and AI to collect, integrate and analyze unique and comprehensive data, providing caregivers with real-time and long-term clinical decision support to boost hospital operational efficiency and drive better patient outcomes and profitability.
Caresyntax executives said the company will use the fresh capital to scale customer adoption of surgical software tools and for continued development of the company’s AI and edge-to-cloud applications. The funding also supports its M&A strategy. Following several U.S. surgical data and technology acquisitions last year, the company is looking to complete several deals in 2024, executives said.
Caresyntax raised $130 million in a series C round in 2021. Since that fundraise, the company has launched AI products that are being used by care teams internationally and opened new markets relating to insurance underwriting and medtech clinical outcome analysis, according to the company.
The company also reports 75% growth in revenue and increased margins in the first half of 2024, "highlighting the expanding recognition and adoption of Caresyntax’s innovative platform in U.S. and EMEA healthcare systems," executives said in a press release.
That follows strong revenue growth in 2023 as well, fueled by Caresyntax's technology's demonstrable impact on hospital volumes and outcomes, such as an 8% increase in OR case volumes via operating efficiency improvements and a 33% decrease in length of stay via value analysis findings, the company reported to Fierce Healthcare in late 2023.
“Together with our partners and investors, we are working towards deploying precision surgical tools, empowered by data and AI, to improve patient outcomes," Dennis Kogan, co-founder and CEO of Caresyntax, said in a statement. "This financing is not just an investment in Caresyntax, but an investment in the future of surgery. My gratitude extends to our investors who contribute to and believe in the power of smart data and AI usage in the operating room.”
The company has expanded further into the medtech market via key channel partners, such as Draeger and via the integration of CQInsights, which brings a data-as-a-service offering for value analysis, product launch and adoption and market access to its medtech clients. With these additions, Caresyntax now services providers (hospital and clinical practices) and medtech (industry suppliers) with its platform, with focused development for both segments this year.
Company executives told Fierce Healthcare in January that one of the company's ambitions is to manage the total value of surgical care through surgical accountable care organizations.