Richmond growth equity firm Blue Heron Capital said Wednesday it is the leading investor in a $14 million Series B round for Redi Health, an Ohio company behind an app for managing chronic disease.
Other investors in the round include Cincinnati’s Refinery Ventures; West Lake, Ohio’s Mutual Capital Partners; Columbus, Ohio’s Rev1 Ventures; and Chicago’s M25.
Blue Heron said the investment follows its philosophy of identifying and backing companies that show potential for growth and address “pressing needs within health care and technology sectors experiencing meaningful transformation.”
Redi told sister publication Columbus Inno the new funding will go toward building out its network and finding more ways to reach patients early.
Redi's app is free for patients to use, and encompasses medication reminders, symptom trackers, meal diaries, diet plans, health education and other aspects of managing a condition.
Revenue comes from pharmaceutical manufacturers: The app digitizes enrollment in their patient support programs, which offer financial aid for high-cost medications. Only about one in five patients enroll in the phone and fax-driven process.
"The digital health sector presents a tremendous opportunity for innovation, and Redi Health is at the forefront of this transformation," Blue Heron Partner Gordon Crenshaw said in a statement.
The firm has worked with similar health-tech companies and understands the unique problems they face — and can help other portfolio companies avoid repeating mistakes, Redi CEO Luke Buchanan told Columbus Inno.
Blue Heron draws on a collaboration of experienced entrepreneurs to serve as directors with the startups it backs. Jim Clair, CEO of SevenRx and past executive with several other pharmacy benefits tech companies, is joining Redi's board.
The Richmond firm, which is led by co-founders Tom Benedetti and Andrew Tichenor, has made several investments in Virginia companies in recent years, including Richmond autism telehealth startup AnswersNow, McLean health care staffing startup ShiftMed and McLean identity tech startup Verato. In 2016, it participated in a $17 million funding round for Reston health startup Avizia, which later sold to American Well in 2018.
