AcuityMD raises $ 7 million to better keep pace with changing medical device world – TechCrunch
In a world defined by tons of noise and little signal, startups that make it easier for consumers to make a choice just make sense. Career Karma helps students choose a tech bootcamp, Stackin ‘helps millennials navigate the world of neobanking and savings apps, and a new Boston-based company is helping physicians keep up with the most up-to-date medical devices on the market.
AcuityMD, founded in 2019 by Mike Monovoukas, Lee Smith and Robert Coe, is an enterprise software company focused on unlocking the often siled world of medical device data. And to do so, he landed a $ 7 million seed round this week, led by Benchmark.
As part of this agreement, reference GP Eric Vishria will join the AcuityMD board of directors. Ajax Health, which closed $ 100 million in 2019 to support medical technology companies, also participated in the round. With seed money, Monovoukas said AcuityMD plans to double its team of eight by the end of the year and invest heavily in one specific area: “product, product, product”.
AcuityMD is a data platform that tracks the entire lifecycle of medical devices – from the sale of an item to a patient’s outcome after surgery. It brings together industry and market data on individual medical devices to give a kind of metadata about a single product.
“There are thousands of products launched every year and so it is almost impossible for a surgeon, after graduation or residency, to keep up with the latest and best medical technologies available,” Monovoukas said. “We see this as a software and coordination problem, where you have all this data out there and it’s ineffective in reaching the decision maker.”
Monovoukas experienced inefficiencies in the management of medical devices when a family member had to undergo a series of surgeries.
“What fascinated me is that the manufacturer has a lot of information on what to use, [and] sometimes it was not broadcast to the right surgeon at the right time, ”he said. “The basic realization that I had was that the flow of information in this industry was a bit broken … It was not a problem to be competent doctors or surgeons, but a lack of transfer information, which is a bit crazy in a data-driven environment. world.”
So the entrepreneur, who previously worked at Bain & Company as well as a medical device company, began to think about how to use data to make medical devices more responsive to long-term patient outcomes. While physicians were a key stakeholder who wanted more information, the AcuityMD team decided to sell device manufacturers as a key customer.
Now part of that reason could be because hospitals and doctors are notoriously hard to sell. The other reason, Monovoukas tells me, is that medical device performance data is a key signal that sales teams within manufacturers can use to strengthen and better target their pitches. The co-founder explained how manufacturers want market visibility for their products, ranging from data on where high-volume surgeons might need one of their devices to long-term results on certain devices over time. .
The data could help a sales representative preemptively determine how targeting 10 surgeons for a specific product impacts financially on the manufacturer and in the context of the rest of the market.
AcuityMD is preparing to become a real-time medical device database. In the long run, it could position itself as a same-day shipping service connecting manufacturers with surgeons in high-demand, mission-critical transactions. Monovaukus says that while logistics and inventory are a “visceral” problem for the medical device industry, there is no solution in place yet. He could see the startup coming to a point in the future where it can predict the inventory levels required at each facility – much like some companies like Medinas, co-founded by Chloe Alpert, operate and manage within hospital systems.
But for now, AcuityMD believes it can make the best use of its platform and millions of VC outside of the vendor’s system. It derives much of its hospital and surgeon data from Medicare CMS and insurance companies, leaving no action required on the provider side.
One challenge will be to ensure that these data sources are good enough to extract the real signals. The startup is still defining good.
“I heard someone say once that any digital health business will ultimately become a health data business,” he said. “We approach things a little differently.”