H1, a tech platform hosting healthcare provider profiles for life science customers, has acquired Portland, Oregon-based Carevoyance to fuel a push into the medical device space.
The deal closed in late July and ran the New York City-based company seven figures in cash and stock, Ariel Katz, co-founder and CEO of H1, told Fierce Healthcare. All six of Carevoyance’s employees will be retained, and the company will operate as an independent subsidiary.
Katz said there is no shortage of parallels between the two companies, both in terms of culture and product.
H1, for instance, acts as a “LinkedIn for healthcare,” collecting comprehensive profiles on 10 million healthcare professionals and thousands of worldwide institutions.
These data—regularly kept up to date by the company’s data team and other physician users—can give life science companies seeking out key opinion leaders or potential clinical trial sites information on a provider’s research portfolio, patient mix, social media activity and more.
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Carevoyance, meanwhile, has built a similar healthcare provider data collection tool for medical device companies looking to craft a targeted sales strategy.
According to its website, Carevoyance has amassed data on more than 1.2 million physicians and over 6,000 healthcare organizations. Katz said the company also counts 30 of “the largest device companies” among their customer base, representing a clear avenue of expansion for H1.
“The vast majority of our work has been on therapeutics, pharma. This company, Carevoyance, they only work in device,” Katz said. “The regulatory pathway to launching a device is different … the value propositions are different and the customer overlap is like zero—actually, it’s one. We met via Abbott, who was our only device client at the time and introduced us.”
There are also signs that demand and investments into medical device market intelligence are ramping up, Katz said. AcuityMD, a competitor of Carevoyance, recently raised $7 million from investors at the same time more established names like Definitive Healthcare are ramping up their focus in the medical device segment, he said.
“The money into medical devices and paying for data is growing like crazy; a need for something like Carevoyance and H1 is growing like crazy,” he said. “Big pharma, biotech have always been … very data-heavy businesses. Device is starting to trend into that … and so we see this market [as] really early and we want to push it forward.”
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H1 has been on the receiving end of growth investments itself. Since its 2017 launch, the startup has brought in more than $70 million across multiple rounds of funding and, according to Katz, now pulls more than $10 million in revenues. It also staffs about 200 U.S. employees and has presences in multiple other countries.
For its newest push into the device space, H1 doesn’t want to toss out Carevoyance’s brand recognition. Katz said. The new subsidiary will be keeping its name and platform separate in the short term before gradually integrating with H1 and receiving new technology and team investments.
“When we first met Ariel and the H1 team, it was clear that they were building something special,” Anatoly Geyfman, founder and CEO of Carevoyance, said in a statement. “After getting to know the team and their mission, we became convinced that joining forces with H1 would not just give us the reach and the resources to continue serving our current and future customers at an even higher level, but also accelerate both of our companies in our combined vision of helping bring the right treatment to the right patients at the right time. We’re really excited to join H1’s world-class team to collectively pursue this goal.”