Zipnosis Picks Up $3m In Fresh Capital

Minneapolis healthtech venture Zipnosis has raised $3m in new convertible capital investment according to CFO Eric Bosler.

Zipnosis was established in 2008 by CEO Jon Pearce to offer economical online diagnosis and prescription services for minor health ailments, defining telehealth in the early days.

While they started as a direct to consumer model and began scaling with that approach, the company shifted the product into a true B2B SaaS solution by 2013 and partnered with a variety of nationwide medical providers who wanted to offer the virtual visit option directly to their own patients.

“We believe that every health system and care provider in the country must have a digital front door and offer virtual care,” Bosler says of the company’s ongoing operating thesis.

After years of heads down business building, the big boom came for Zipnosis in 2016 via $17m investment round in December 2015 led by Safeguard Scientifics of Pennsylvania, with funding also from Ascension Ventures (MO), a subsidiary of the nation’s largest Catholic health care system. Hyde Park Venture Partners (IL), Arthur Ventures (MN), Waterline Ventures (MA) and Omphalos Venture Partners (MN) also participated in that round.

Local legend Kyle Rolfing, a repeat entrepreneur and Bright Health founding executive is listed as a company director, as is Mayo Clinic’s CIO Cris Ross, though Fairview is the only disclosed local strategic corporate investor in Zipnosis.

Zipnosis lives inside the T3 Building in downtown Minneapolis and has 45 employees on board, up from 28 when they closed on that $17m series A.  Combined to date Zipnosis is estimated to have now raised ~$23m and ranks within the top 15 ‘most funded’ tech companies within Minnesota.