TECHdotMN: News about Minnesota Startups

Via News Release

“Minneapolis, MN and Stamford, CT – March 7, 2013 – ABILITY Network Inc, a market-leading healthcare technology company, welcomes IVANS, a trusted provider of secure communication services, to the country’s largest secure web-based healthcare network. The companies jointly announced that they have entered into a definitive merger agreement.

Together the combined company will create the most reliable and secure network to Medicare and other payers and an unparalleled opportunity to accelerate the delivery of a broad set of innovative products and services across that platform.”

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Via News Release

“MINNEAPOLIS, Minn. – September 19, 2012 – Ability Network, the nation’s largest and most secure web-based health network, announced David Fusari has joined the organization as Executive Vice President and Chief Technology Officer.

In this key strategic executive position, Mr. Fusari will oversee the Company’s continued commitment to innovation in broadening its healthcare platform to enrich administrative workflows with nuggets of clinical content, enabling ABILITY’s providers to deliver better care through innovation and technology that ultimately improves access, quality and overall cost, enhancing the patient experience.”

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According to our 2011 second quarter analysis, at least 17 19 early stage Minnesota technology firms received investment capital during April, May and June.

Updated 8/4/11: Three additions to our Q2 2011 Minnesota tech investment analysis:

• Ability Network’s round was actually $27m, $7m more than previously reported.

• Video for Athletes’ (aka PrepAthlete) $200k was inadvertently omitted from initial numbers.

• Online/offline classified advertising and integrated multimedia employment company JobDig banked$1.25m from LFE Capital, according to recent PWCMT data.

Roughly $26.5m $35m in funding was attributed to Minnesota’s high tech sector, largely skewed by health IT firm Ability Network’s $20m round $27m round.  Ability’s raise was the largest tech deal Minnesota has seen since January 2010, when Cymbet raked in $31m for thin film rechargeable batteries. The remaining 16 18 startups raised roughly $6.5m $8m combined, for an average round of $405k $445k.

When contrasted against last quarter’s analysis, both the number of transactions (-15%) (-10%) and the aggregate funding volume are down (-30%) (-8%), although the average deal size is up slightly.

This analysis supports the full spectrum of financing ($25k+), regardless of stage or definition (angel, seed, series A etc.) and many startups are currently fundraising. While we attempt to compile the most complete set of data, it remains imperfect as unreported transactions occur.

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By Katharine Grayson, Minneapolis-St.Paul Business Journal

“Health care IT firm Ability Network Inc. officially announced Tuesday that it’s raised $27 million in venture capital in a round led by Bain Capital Ventures.

Last week, I reported [TECHdotMN broke the news] that Ability, formerly called VisionShare, raised about $20 million as part of the larger fundraising effort.. The company declined to comment at the time, but CEO Mark Briggs agreed to an interview on Tuesday.”

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Good interview!

A Minneapolis-based health IT firm formerly known as VisionShare and now called ABILITY Network, has reported landing $20m in equity financing, according to SEC documents.

The company boasts “the largest, most secure web-based healthcare network in the country, which now facilitates millions of transactions each day.”

Founded in 2000, a back of the napkin sketch shows an estimated $3m in funding thus far; it looks like the company began hiring-up in March, before starting this round in April.  It appears that local VC Lemhi Ventures and MA’s Bain Capital was in on the round.

The deal marks the second largest single round in Minnesota tech since January 2010 when Cymbet’s obtained $31m.