April 12, 2023
Health Data Cloud Leader 1upHealth Raises $40 Million Series C led by Sixth Street Growth
Company to invest in scaling its health data platform, providing payers, providers and digital health companies with an end-to-end solution for interoperability and open computing
BOSTON – April 12, 2023 – 1upHealth today announced the close of a $40M Series C investment led by Sixth Street Growth with participation from existing investors F-Prime Capital, Jackson Square Ventures, and Eniac Ventures. 1upHealth will use this latest investment to expand product development and customer growth teams and accelerate efforts to lead the digital transformation of the healthcare industry in the cloud.
1upHealth’s FHIR®-native platform designed for interoperability and modern computing is used by over 75 enterprise organizations including leading national and regional health plans, the highest performing CMS ACOs, international clinical research organizations, and over 20 state medicaid agencies. By leveraging the industry’s FHIR standard, modern and open cloud architecture, and restful APIs, 1upHealth helps customers acquire, store, and interact with the data needed to power their business operations and analytics.
“Over the past decade, industries ranging from manufacturing to retail have all undergone digital transformation and now it’s healthcare’s turn. Our customers are ready. They are more and more motivated by the power of what data and interoperability can do for their business,” said Joe Gagnon, CEO of 1upHealth. “With the support of one of the top growth equity firms in Sixth Street Growth, we are at the forefront of this transformation and 100% committed to building healthcare’s modern data cloud.”
The funds raised will be used to accelerate efforts in building the 1upHeath Data Cloud across three key areas:
- Invest in product development and engineering in preparedness for proposed and future CMS regulations
- Enhance 1upHealth data cloud infrastructure for serverless scalability and open access
- Grow Customer and Services teams to support market expansion across payers, providers, pharma, digital health and more
Founded in 2017 and referred to as the “first true implementation of ONC’s intent for healthcare interoperability” by Gartner in their 2020 Cool Vendors in Healthcare Interoperability Report, 1upHealth has since grown 101% in ARR year over year; 648% ARR growth since 2020.
“The healthcare industry is under significant pressure to improve the quality of care and reduce per capita costs, and leveraging the power and insights of combined claims and clinical data via 1upHealth’s FHIR-standard platform is one way to achieve this,” said Lee Mooney, Managing Director at Sixth Street Growth, who will join the Company’s Board of Directors. “With proposed federal regulations requiring enhanced health information exchange capabilities, 1upHealth is well-positioned to respond to these market forces while helping healthcare organizations enhance the utility of their data using modern database technology.”
1upHealth provides a modern data platform that’s cloud-based, API-enabled, and FHIR-native. The company was founded in 2017 and built natively in the cloud using FHIR as the easiest way to connect, control, and compute on health data. More than 75 enterprise health plans and health systems operate on the 1up platform with 35+ million patients. Our industry-leading tools enable quick connections using FHIR APIs to patient data at an individual and population level, high quality transformation of legacy data, unmatched field-level security, and consent management with robust data governance. With the push towards digital quality measures, population health analytics, value-based contracts, and better healthcare experiences, the 1up managed platform helps our customers to meet the growing demands for data access and connectivity. For more information visit https://1up.health/.
About Sixth Street
Sixth Street is a leading global investment firm with approximately $65 billion in assets under management and committed capital. Sixth Street Growth is the firm’s dedicated platform for making private investments in growth companies. The Sixth Street Growth team partners with companies and management teams to provide bespoke capital solutions to accelerate organic and inorganic growth. Sixth Street has invested over $9 billion in more than 70 companies in its growth investing strategy since inception. Select Sixth Street Growth investments include Airbnb, AvidXchange, Bloomreach, Datavant, DrFirst, Gainsight, MasterControl, MDLIVE, Spotify, and Sprinklr. For more information, visit www.sixthstreetgrowth.com, and follow Sixth Street on LinkedIn, Twitter, and Instagram.