After closing a $2.5 million seed round, Chapel Hill-based healthtech startup Quinsite hopes to pursue new market opportunities and enhance its healthcare analytics platform, the company announced today.
The round was led by veteran RTP-based investor Jeff Clark—the former co-founder of multiple healthcare companies as well as the VC firm Aurora Funds—and included several other angel and institutional investors.
Husband and wife Co-Founders Jeff and Jenny Maze began Quinsite in 2017 based on their experiences in the healthcare industry. [We first profiled Quinsite last June.] Jeff serves as CEO while Jenny is COO of the platform that offers real-time, robust dashboards and reports to help healthcare practice leaders gain insights across their organizations. Quinsite’s mission since day one has been to increase productivity and boost revenue for healthcare practices while improving quality of care for patients.
To date, Quinsite serves 20 percent of the top 100 largest radiology practices in the U.S. and has seen a 100 percent client retention rate. Quinsite also saw a year of significant growth in 2021, increasing annual recurring revenue (ARR) by 70 percent.
But when the Mazes began their startup five years ago, all they knew was that they had a good idea. They didn’t anticipate the way their solution would transform into an entire platform that is able to launch surveys, dashboards and benchmarks.
“Like most entrepreneurs, the path that we took was not very clear initially,” Jeff Maze said. “Thankfully, we’ve surrounded ourselves with smart, capable and talented people like Jeff Clark. That has really helped shine a light on the path ahead of us so we can make more informed decisions.”
With the $2.5 million in seed funding, Quinsite hopes to expand even further, entering healthcare markets like pathology, anesthesiology, emergency medicine and orthopedics, while growing its marketing and sales departments.
“As a bootstrapped company, we’ve been able to grow over the last five years, but we’ve had to make very calculated decisions about where to grow, who to hire, what to do,” Jeff Maze said. “This gives us a chance to be a little more aggressive and assertive in a marketplace where we have some really good penetration, where we’ve really started to become a leader in the industry.”
Clark, Quinsite’s lead investor this round, said healthcare analytics represented an estimated $9.1 billion market opportunity in 2019. And today, all but the largest healthcare systems lack the tools they need to generate actionable data from their clinical and practice management systems.
Ultimately, however, Clark said his desire to invest in startups always comes down to the people.
“Jeff and Jenny are remarkable leaders,” Clark said. “I think they identified a real need, and they were uniquely positioned to come up with a very viable solution that’s also very scalable.”
Since this is the first time Quinsite has accepted funding from outside investors, it was integral they took the right type of funding, Jeff Maze said. Clark’s experience, connections and knowledge has been transformational for them as first-time entrepreneurs, he added. In addition to co-founding Aurora Funds with Scott Albert in 1994, Clark also co-founded four startups, including Veritas Collaborative (a specialty hospital system for the treatment of eating disorders) and the healthcare staffing marketplace Matchwell, which we wrote about last February.
Says Jeff Maze, “It’s always been about ‘Let’s take the right, smart money. Let’s make sure that’s tied to people with the same beliefs, people with good connections, people who can help the company move itself forward.’”