The round was led by Sapphire Ventures and brings the total capital raised to $34.1m
Collectly, a US-based health fintech, has raised $29m in a series A funding round to fuel the company’s financial engagement software and market expansion.
The round was led by Sapphire Ventures, with participation from YC, Wayfinder Ventures, Burst Capital, Cabra VC and Davidovs VC.
This latest investment brings the total capital raised to $34.1m.
Levon Brutyan and Max Mizotin launched the company in 2017 to “bridge the disconnect” between providers and patients.
The company estimates that in 2023, medical providers will fail to collect an estimated $200b, due to manual collection processes.
Collectly uses an end-to-end billing workflow, which “streamlines patient engagement and payment processes”.
Statistics provided by the company show that it has improved patient collections by 75%, reduced days sales outstanding from 90 to 12, and has a 93% patient satisfaction score.
The company engages with 300,000 patients daily and has grown more than three times year-over-year.
Collectly plans to expand its base of partners, including medical groups and healthcare organisations, that lack “sophisticated” patient financial management in-house.
Brutyan commented: “There are thousands of medical groups across the United States. At Collectly, our mission is to ensure that all healthcare organisations, irrespective of size, have access to cutting-edge financial engagement solutions.
“With Sapphire Ventures and our other investors at our side, I am confident we can truly transform the industry.”
Paul Levine, partner at Sapphire Ventures, and Collectly’s newest board member, added: “The healthcare payments system is broken. The process is outdated and as a result, is hurting providers and patients alike.
“Collectly’s intuitive, innovative software platform is bringing patient billing into the modern age, making it easier for medical groups to collect payments and empowering patients to understand and pay their bills.”