Irvine, California-based Kareo, which offers cloud-based medical office software for small practices, announced Tuesday that it has raised $20.5 million.
Stripes Group led the investment while existing investor Western Technology Investments also participated in the round. Including this investment, the health IT company has raised more than $38 million.
The funds will be used to launch Kareo Billing Services, a revenue cycle management service, as well as to expand sales and marketing. The company has had a busy 2012, doubling its employee base and annual revenue in addition to acquiring more customers tipping Kareo over the 6,000 mark.
“Stripes Group was attracted by Kareo’s unparalleled track record at building and deploying cloud-based software into the small practice medical market. The company’s growth rate over the last few years has been phenomenal and is a testament to the strength of Kareo’s ability to execute in an area where many have failed,” said Ken Fox, managing partner of Stripes Group, who is joining Kareo’s board, in a statement.
[Photo Credit: freedigitalphotos user Salvatore Vuono]