Veda Data Solutions, Inc., which uses artificial intelligence to automate health care data for providers and payers, closed a $45 million Series B funding round led by Connecticut-based venture capital firm Oak HC/FT, the company announced Tuesday.
Madison-based Veda said it will use the money to grow faster in order to help health care payers address imminent regulatory requirements to process data more quickly.
“There’s an urgent need for automation in healthcare to reduce inefficiencies and upwards of $1 trillion in unnecessary costs,” Veda co-founder and CEO Meghan Gaffney said in a statement. “The acceleration of health technology this past year, combined with legislative imperatives such as the No Surprises Act, are positioning Veda as an indispensable partner for payers."
Starting Jan. 1, 2022, the legislation will require provider directory updates to be processed in less than 48 hours, according to Veda. With Veda's technology, payers can process the data in as little as 10 minutes or within 24 hours at the most, the company's website states.
Six of the top 10 health plans already use Veda, according to the company's website. It expects to grow its customer base seven-fold by the end of 2022, according to the announcement. Providers and payers that use Veda can save up to 90% in administrative costs, according to the company.
Veda's deal may be among the biggest venture capital investments in a Wisconsin company this year. In 2020, the average round size raised by early-stage companies in the state was $4.2 million, according to a report by the Wisconsin Technology Council.
Founded in 2015 by Gaffney and Bob Lindner, a University of Wisconsin-Madison alumnus who serves as the company's chief technology officer, Veda has locations in Madison and Washington, D.C. The company has nearly 50 employees, according to its website.
Oak HC/FT managing partner and co-founder Andrew Adams will join Veda's board of directors, according to the announcement. The firm focuses on health care and financial technology companies.
