Seattle health-tech startup DexCare announced Wednesday that it raised $75 million in fresh cash to boost the development of its healthcare patient demand and access platform.
The financing marks one of the largest Pacific Northwest venture capital deals this year, putting it on par with the $75 million rounds raised by Aspect Biosystems and Temporal earlier this year, according to GeekWire’s funding tracker.
Providence initially started DexCare in 2016 to help with digital patient acquisition for its same-day care business, Providence Express Care Virtual. DexCare’s software platform helps manage health system capacity and appointment booking, navigating patients to the most appropriate care setting.
The startup, which spun out of Providence’s digital innovation group in 2021, now serves customers including Kaiser Permanente, Providence, Community Health Network, and others.
Dexcare was a finalist for the 2023 Health Innovation of the Year at the GeekWire Awards.
The startup’s funding comes on the heels of the pandemic, when “health systems rushed to care for their communities, stressed an already high level of provider and nurse burnout,” Dexcare CEO Derek Streat said in a statement.
“The pandemic taught us that consumers want convenience and choice, and that health systems need controls to manage the supply of care,” he said
Hospitals and other healthcare systems are also bracing for a surge in demand in patient volumes. Factors such as the greying of America, expanding middle class, and nursing shortages have contributed to the strain on healthcare workforces.
Streat previously co-founded C-SATS, a Seattle startup that uses technology to grade surgeons and was acquired by Johnson & Johnson in 2018, and he also founded AdReady and Medify.
Venture capital funding to Seattle-based startups hit a 6-year low in the first quarter amid the broader tech slowdown driven by economic uncertainty and higher interest rates.
This is the third year in a row that DexCare has raised venture funding. The startup raised $50 million in January 2022, which came after its $20 million round in 2021. Total funding is $146 million.
Other spinouts from Providence’s Innovation group include Xealth, which raised $24 million in 2021, and Circle, which was acquired by Wildflower Health. Providence also runs Providence Ventures, a $300 million venture capital fund that invests in early-to-mid-stage healthcare companies.
Providence is also an investor in Seattle-area healthcare data company Truveta and was involved in forming the company.
DexCare’s Series C funding round was led by Iconiq Growth, signaling a vote of confidence in the fast-growing startup. The San Francisco-based private equity firm has backed the likes of DataDog, GitLab, Miro, and Snowflake.
Other participants in the round include existing investors Transformation Capital, Kaiser Permanente Ventures, Define Ventures, Frist Cressey Ventures, and SpringRock Ventures.
