Milwaukee health care payment software startup Sift Healthcare said Thursday that it has closed a $20 million funding round that it will use to expand its workforce and invest in artificial intelligence.
Sift said the Series B round was led by B Capital, with continued support from existing investors, including Allos Ventures, First Trust Capital Partners and Rock River Capital. Allos Ventures, an early-stage investment firm with offices in Indianapolis and Cincinnati, had led the company's $9 million Series A round aimed at increasing sales of its software, which is designed to help medical providers get paid more efficiently by patients and payers.
B Capital is a New York-based global multistage investment firm that recently closed on its B Capital Opportunities Fund II LP with $750 million in total commitments.
The Series B funding round follows the launch of Sift's recent RevProtect product, which is aimed at helping health clinicians and companies improve accuracy, prevent clinical denials and reduce avoidable write-offs.
Sift works to use data science and machine learning to unify hospitals’ clinical coding and payments data, predict insurers' denials and patient payments, and help increase payments, Bethany Grabher, vice president of marketing and communications, had previously told Wisconsin Inno.
"As health systems face shrinking margins and growing payment complexities, leveraging AI-based technologies to ease the administrative burden and optimize reimbursement is more important than ever," said Justin Nicols, founder and CEO of Sift Healthcare.
Nicols said B Capital's support will allow Sift to scale its product, dubbed the Payments Intelligence Platform, in new and existing markets.
B Capital, which has more than $6 billion in assets under management, focuses on seed to late-stage venture growth investments, primarily in the technology, health care and climate tech sectors.
"The use of artificial intelligence and machine learning to improve health care delivery and administration is a major area of focus for us as a firm," Dr. Robert Mittendorff, general partner and head of health care at B Capital, said in the press release.
