Beyond Lucid Technologies, a 3-year-old startup that offers a mobile platform for first responders, called Mediview, announced a new investor this week. Dalmore Investments LLC, an angel fund based in Minneapolis, gave the company a six-figure convertible note, according to their website. This appears to be the company's first major raise. It will be added to $420,000 in previously announced seed funding, including grants from the National Institutes of Health and Carnegie Mellon.
The company's CEO Jonathon Feit told MobiHealthNews that because of the nature of the angel group they wanted to keep the exact funding number quiet. But he said the company will be using the money to build up a marketing department around what he believes is already a very functional product.
“We've been operating very much in a bootstrap fashion, since we started,” he said. “And we've been living the Silicon Valley dream, working out of a garage and virtually. That's gonna change and the efficiency we're going to get out of that is pretty significant.” He also said the company plans to hire more sales and marketing staff.
Beyond Lucid Technologies (BLT) has been a company to watch this fall. In September it was selected as one of the 12 companies to join incubator StartUp Health's second class. In October BLT won the Series A category of the DC to VC: HIT Startup Showcase, sponsored by Morganthaler Ventures and Health 2.0. Feit and co-founder Christian Witt met Dr. John Blank, who leads Dalmore Investments, at DC to VC, according to the announcement.
Blank said in the press release, "We know that each year, emergency responders lose roughly $3 billion in unbilled and uncollected revenue because existing methods are ineffective to document care while traveling in a vehicle alongside a sick patient. Generating reliable health records in the EMS context — and unlocking the data they hold — has been a problem in search of a solution for years. We are working with Beyond Lucid Technologies because we think Mediview provides this necessary solution."
At the DC to VC competition, Beyond Lucid impressed judges by having a comprehensive system and identifying a real problem space in healthcare: They estimate 50 percent of ambulances use paper records which are then handed off to the hospital ER staff, a system that doesn't get crucial health information to doctors as quickly or efficiently as it could. Mediview is a cloud-based mobile platform which connects to hospital EHRs, handling the information hand-off digitally. Despite a relatively small amount of funding, BLT has managed to sign on a number of clients, Feit said.
The company has been getting a lot more interest since DC to VC, Feit said.
“We hadn't been courting VC investments; we'd been building quietly,” he said. “It's kind of a Catch-22. You need some truth points in order to generate money and vice versa. But when it comes to certain healthcare services, you simply can't deploy a beta. You have to have a version that works. If something goes wrong, people die.”