FinTech News
Healthcare FinTech Cylerity Raises $28 Million in Capital
A FinTech focused on improving healthcare payments has raised a new round of funding.
About Cylerity’s Funding Round:
Recently, Cylerity announced a total of $28 million in new funding. This includes a $4 million seed round and a $24 million debt facility. The “over-subscribed” equity portion of the round was led by HealthX Ventures, with C2 Ventures, Upstream Ventures, Wisconsin Investment Partners, and Tundra Angels also participating. First Business Bank established the debt facility.
With this funding, Cylerity says it intends to expand its team, including adding more engineers and data scientists. Additionally, it plans to expand its partnerships with both healthcare providers and financial institutions.
More on Cylerity:
Cylerity is a platform that aims to improve healthcare reimbursements and payments. To do this, it employs AI to detect anomalies, while also utilizing machine learning models to provide insight on payment status and amounts.
According to the startup, healthcare providers regularly wait between 45 to 120 days after services are provided to receive payments. With Cyclerity, funds can be advanced within 24 hours of claim submission.
What They’re Saying:
Speaking to the need for Cylerity, the company’s founder and CEO Ryan Wheeler explained, “Providers shouldn’t have to wait months to get paid for care they’ve already delivered. By valuing receivables in real time, we give practices the financial predictability they need to keep operations running smoothly and patients cared for without disruption.”
Meanwhile, commenting on the firm’s investment, HealthX Ventures’ managing partner Mark Bakken stated, “Cylerity is tackling one of healthcare’s biggest pain points — payment delays — by bridging the gap between care delivery and reimbursement. We’ve seen firsthand how their platform brings stability to providers and helps them stay focused on patients instead of paperwork by allowing them to get paid within a few days instead of potentially months.”
My Thoughts:
If there’s one thing I’ve learned in my years of writing about FinTech, it’s that payments in general can be a lot more efficient. Yet, while there have been some general solutions that have grown into behemoths, specialized and vertical-specific startups have also found success.
Cylerity is a great example of that trend as they’re addressing a singular industry (at least for now) and tailoring their platform to those needs. To me, that seems like a smart strategy — and it seems that early investors agree. So, while this $4 million seed round is the first funding the company has raised, I fully expect to be writing about future funding for the company in the years ahead.
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