ResolvMD, which sells software that it claims simplifies and streamlines the medical billing process for physicians, plans to use this term loan to fuel its product development plans and pursue growth opportunities across Alberta.
Patrick Onyekweli, ResolvMD’s co-founder and CEO, told BetaKit that the startup secured this financing from PaceZero to “augment [its] organic growth with strategic acquisitions.”
ResolvMD aims to bring more transparency and efficiency to medical billing.
“We are experiencing excellent organic growth as interest in paperless [and] tech-enabled billing grows,” Onyekweli said. “There are only a few companies that are focusing on enhancing the billing product [or] service to varying degrees, so there’s a point-in-time opportunity to buy legacy businesses and enable their physicians to migrate onto our platform in an orderly and value-based way.”
Founded by a group of physicians, billers, software developers, and finance professionals in 2019, ResolvMD aims to bring more transparency and efficiency to medical billing. Backed by 37 physician shareholders, ResolvMD provides full-service billing management, claim-submission software, and a cloud-based insights platform.
According to Onyekweli, ResolvMD’s customer base has been growing at a rate of approximately 10 percent month-over-month, and the startup is currently generating positive earnings before income, taxes, depreciation, and amortization (EBITDA).
ResolvMD, which previously closed a $1.2 million seed round in late 2020, intends to raise additional equity capital in the near future to help it move more quickly on its acquisition and product development plans.
On the latter front, ResolvMD’s roadmap involves adding features within its physician-facing portal and moving towards “completely automated” billing. “We want to put significant time back into a physician’s control so they can focus on patient care versus paperwork,” said Onyekweli.
Established in 2021, sustainability-focused PaceZero lends to established, high-growth companies developing tech that drives improved social and environmental outcomes.
“We got along really well with Patrick and his team [and] the market opportunity clicked for us right away,” PaceZero co-founder and CEO Jordan Peckham told BetaKit. “The Canadian healthcare system is remarkably antiquated. ResolvMD’s platform is delivering significant efficiencies to physicians and healthcare administrators.”
With the deal, ResolvMD has become PaceZero’s second Canadian client to date, joining Toronto-based healthtech startup Lucid, which closed over $3 million in equity seed funding last year to develop an alternative form of mental health therapy for people suffering from Alzheimer’s disease.
PaceZero’s other clients include Dallas-based tech-enabled waste-management firm CheckSammy, North Carolina intelligent document-processing startup Infinia ML, and San Francisco-based healthtech company Feel Therapeutics.
Feature image courtesy ResolvMD.