Modernizing Medicine raises $38 million in venture funding

Daniel Cane, right, and Michael Sherling are co-founders of Modernizing Medicine, a health-tech company based in Boca Raton.
Daniel Cane, right, and Michael Sherling are co-founders of Modernizing Medicine, a health-tech company based in Boca Raton. Miami Herald

Modernizing Medicine, the Boca Raton-based creator of the Electronic Medical Assistant, a specialty-specific electronic medical record system, announced Monday that it has closed a $38 million Series E venture financing, bringing total capital raised to about $87 million.

Investors in the latest round of financing included national firms Pentland Group, which has been an investor since fast-growing Modernizing Medicine’s first round; Summit Partners, also an existing investor; and Sands Capital Ventures, a large healthcare fund and new investor for Modernizing Medicine. “We greatly appreciate the vote of confidence,” said Daniel Cane, co-founder and CEO of Modernizing Medicine.

Earlier this month, Modernizing Medicine completed its acquisition of Weston-based gMed. The gMed acquisition gives Modernizing Medicine 18 percent of the gastroenterology market, and Modernizing Medicine recently launched into urology, said Cane on Monday, speaking from a board retreat. With the gMed acquisition, Modernizing Medicine now employs 430 people.

“We continue to focus exclusively on medical and surgical specialty markets. Those are the most difficult markets to provide software for and they are the best fit for our solution because of just how our solution was designed,” said Cane, a serial entrepreneur who also co-founded Blackboard.

Modernizing Medicine also recently launched a telemedicine solution, Cane said. “If you think of dermatology, where we have over 35 percent of the entire U.S. market, almost everything in dermatology you can diagnose using telemedicine. It provides users a tremendous convenience … It’s a time saver and cost saver for both the providers and the patients.”

Modernizing Medicine, founded in 2010, is one of the most successful South Florida early stage companies in terms of fundraising, revenue growth and employment.Among its recent accomplishments is four No. 1 EHR Black Book rankings for dermatology, orthopedics, otolaryngology and gastroenterology. In August, the company, which booked $30.5 million in revenue in 2014, was named to the Inc. 500 list. It was also one of the first early stage companies to partner with IBM Watson. Modernizing Medicine’s Electronic Medical Assistant, or EMA, provides a specialty-specific EMR system used by more than 6,000 healthcare providers in the United States.

Follow Nancy Dahlberg on Twitter @ndahlberg.