Redox, a Madison health technology company launched by three former Epic employees five years ago, plans to double its staff and expand its network now that it has clinched $33 million from investors — one of the largest recent investments in a local startup.
Redox’s software lets health care apps securely share data with the big electronic medical records systems, a connection that’s becoming increasingly important as programs are developed to, for instance, track your heart rate, count the steps you walk or run, or personalize patient care.
“We think the potential is huge” for specialized health-related apps to be created, CEO Luke Bonney said.
With the rapid adoption of electronic health records in recent years, “there’s a huge opportunity for automating processes, supporting providers and patients in better ways, and looking at health care data in new and different ways,” Bonney said.
Redox says more than 450 health care organizations and hundreds of technology vendors use its platform to communicate. They include Cleveland Clinic, Memorial Sloan Kettering Cancer Center and Fitbit.
Even Microsoft is on board with Redox. In February, Redox said Microsoft Teams — a business app for employees working together on a project to meet and exchange notes — is using Redox to let groups securely share electronic records data with each other.
Redox has 75 employees, with 20 to 25 in Madison, at 2020 Eastwood Drive, just off Atwood Avenue, on the East Side. Because its staff work remotely around the U.S., some employees are housed at co-working offices in Chicago, Seattle, Portland, Boulder, Denver and Austin.
Bonney said the new cash infusion will let Redox double its staff in the next 12 to 18 months.
Bonney would not say what the company’s annual revenues are. He would only say they top $5 million by an undisclosed amount and they have “grown very aggressively” — by more than 300 percent over the past year.
The figures could be a bit heady for Bonney, 33, Niko Skievaski, 32, and James Lloyd, 34, former employees of Epic Systems Corp., the giant electronic health records developer, in Verona.
The three of them came together in Madison in early 2014 and became serial entrepreneurs. They formed 100health, an umbrella group aimed at incubating digital health companies. Seven companies were created under 100health’s fold, including a forum for Epic users and consultants. Another startup published satirical books based on the coding system that health care providers are required to use in order to classify a patient’s injury or illness.
Redox emerged as the startup with traction.
“We realized each (startup) would need to integrate at scale, and that was the nexus for Redox,” said Bonney.
Leading the latest investment round is Battery Ventures, a global investment firm with offices in Boston, New York, San Francisco, London and Israel. Other participants include .406 Ventures, of Boston; RRE Ventures, of New York; and Intermountain Ventures, of Salt Lake City.
Battery Ventures general partner Chelsea Stoner will join the Redox board.
“Redox is a driving force in solving health care’s interoperability challenge,” Stoner said. “We were blown away by the network effects Redox has already generated and how foundational its platform has become to achieving the promise of digital health.”
Redox won acclaim in 2018 from Gartner, one of the leading global research and business advisory groups. Gartner named Redox to its list of “Cool Vendors” in health care, saying the Madison company’s platform simplifies data sharing and integration in a way that “has eluded many giants in the industry.”
Bonney said he’s not necessarily surprised with Redox’s success, but he is proud of it.
“Any early stage company’s success feels both inevitable and incredibly surprising at the same time,” Bonney said. “What we feel every day is gratitude ... We are lucky to be in the position we are in, in a community where we are embraced and supported.”
One of the few startups that also has drawn a large amount of capital in a single round recently is SHINE Medical Technologies, of Janesville. The company announced last November it would receive $30 million from investors, and had signed a $150 million agreement with Deerfield Management Co., a New York health care investment firm, to be parceled out as milestones were reached.
SHINE is building a plant that will produce a critical radioisotope commonly used in medical imaging procedures.