SentryHealth, a Louisville-based health management software company, has recently raised $1 million in fresh capital.
The company, led by president and CEO Kevin Porter, will use the funds to boost its product development and increase sales and marketing. The money is from OCA Ventures, a Chicago-based venture firm, which was already an investor in SentryHealth.
In an interview Thursday, Porter said the new funding will be used to finish some “back end” of product development. SentryHealth doesn’t plan on raise more money at this time, because Porter said it is “sufficiently capitalized.”
“We have the right team in place,” Porter said. “Our product is essentially developed at this point, obviously, it'll never be finalized. We're always going to be developing and enhancing what we're delivering to our customers.
"But we're in a really good place right now. We were operationally sound, and we're really focused on growing the business, accelerating the top line at this point."
According to a filing with the U.S. Securities and Exchange Commission, SentryHealth raised $4.7 million in equity capital in March 2022.
Porter anticipates the company to break even in the first quarter of 2022. SentryHealth has an annual revenue of about $6.5 million. Porter expects revenue will grow to $10 million in 2023.
Porter defines SentryHealth as a “high touch, high tech, care navigation” company. The software leverages data and information to steer people to care. It primarily serves self-insured employers with an employee base between 100 and 5,000 employees.
In terms of business development, Porter said SentryHealth focuses on channel partner development. Most new businesses for Sentry come from insurance brokers and advisors as well as third-party administrators, or TPAs. Porter said the company focuses on developing these connections and does little direct-to-employer marketing and sales.
SentryHealth has 50,000 employees on its platform and some of their dependents, and it anticipates doubling this number next year.
It has about 100 employees, and 10 are in Louisville. As the company adds more clients, it will add more staff to support them.
“The biggest challenge is always going to be finding great staff,” Porter said. “While the work-from-home and hybrid models definitely give us an advantage that we can cast a wide net and finding staff.
"It can be a little more difficult to ramp people up and onboard them when they're remote, and building relationships is always a challenge. I've been on the road quite a bit over the last two or three months visiting where we have clusters of employees and going to dinners and getting to know people. Not having the face-to-face opportunity is always a challenge, but ... I think the benefits outweigh the challenges.”
Earlier this year, SentryHealth went through a merger with WellView Health in March. In June 2021, it bought Florida-based MapHealth.
“We continue to keep an eye on the market for additional [mergers and acquisitions] activity,” Porter said. “There are opportunities there. It’s just a matter of timing, but right now, we’re focused on organic growth and building great business.”
