Health IT, Startups

Home care IT vendor ClearCare gets $60M from Battery Ventures

ClearCare has raised $76 million to date from Battery Ventures, McKesson, Bessemer Venture Partners, Voyager Capital, Cambia Health Solutions and Qualcomm Ventures.

Chelsea Stoner

Chelsea Stoner

 

A San Francisco software firm used by four of the five largest U.S. home care systems announced that it raised $60 million from investment firm Battery Ventures to expand its products and market share and explore possible acquisitions.

ClearCare Online produces a cloud-based platform used by 3,000 home care agencies that staff personal attendants serving more than 250,000 caregivers and 150,000 seniors living in their homes. Its products include a range of services agency customers can select, including workers’ compensation, scheduling, tax credit program, payroll, quality of care monitoring and payments.

Home care agencies help home-bound seniors with activities of daily living like bathing, dressing, cooking and eating and do not involve healthcare delivery from nurses or physicians.

“Increasingly, seniors and people who need assistance with daily activities are opting to stay in the comfort of their own homes. And this trend will only multiply as the senior population expands with the aging baby boomer generation,” said ClearCare Founder and CEO Geoff Nudd in a news release.

ClearCare’s Derek Jones, vice president of marketing, said that the company has raised more than $76 million in Series A, B and C financing rounds. Eight earlier investors include McKesson Ventures, Bessemer Venture Partners and Voyager Capital as lead investors and Cambia Health Solutions and Qualcomm Ventures.

Jones said ClearCare has enjoyed annual double-digit annual growth since its launch five years ago.

“Home care delivers the lowest cost care to the highest cost patients in this $3 trillion healthcare economy,” he said. “We are the market leaders in this space, a $300 million market sector. We provide not only software to help our agency customers operate better and more efficiently, but we also offer family portals for family members to log into from any place around the country.”

Jones said ClearCare predicts continued growth in the sector with 10,000 Baby Boomers turning 65 every day and more than 20,000 home care agencies serving that market.

“Our distribution channel is through existing home care agencies,” he explained. “Many in the market are still using paper and pen for documentation. Our goal is to improve agency owners’ margins. We’re looking to integrate additional products into the market that will reduce owners’ costs.”

Battery Ventures General Partner Chelsea Stoner said her firm was seeking category leaders in the marketplace.

“What we looked for in our investment are strong teams solving big problems. We believe ClearCare is the category leader and has built this great technology platform serving the highest number of agencies, caregivers and patients,” Stoner said.

Stoner, who with Battery Vice President Duncan Gills will serve on ClearCare’s board, said the software firm will use the investment to bolster its customer services and expand its products. Battery has offices in Israel and San Francisco Bay Area, but is headquartered in Boston.

“Mostly ClearCare will focus all of its energy on this part of the market that they have built a leadership position in,” she explained. “But we’ll also be on the lookout for acquisitions.”

Stoner said that Battery has been watching ClearCare’s meteoric rise for several years.

“When a product is so easy to use, there is almost a magic about it,” she said. “That’s one of the reasons that ClearCare was an overnight success when it came on the market. People in the industry had not seen products as simple or efficient to use on one platform.”

ClearCare also announced that Bala Krishna Nakshatrala, former vice president of engineering at Mastercard, has joined ClearCare as vice president of engineering.

Photo: Battery Ventures