Health regtech startup Zipline is saving $10 million for US push
Reporting platform for healthcare compliance and elderly care Zipline.io raised $10 million to accelerate growth in the US market
Existing financier EVP led the round with the VC’s largest follow-on check backed by King River Capital. New backers include TechnologyOne founder Adrian Di Marco, Aconex co-founders Leigh Jasper and Rob Phillpot, the Sypkes Family Office and SecondQuarter Ventures, giving existing investors the opportunity to realize a share of their profits since former Microsoft executive Michael Momsen launched the company in 2016.
Zipline started life as the emoji-based customer feedback platform, RateIt, before transforming into health regtech.
Zipline CEO Momsen focused on automation of critical frontline compliance workflows over the past two years and Zipline.io is now used in a third of Australia’s retirement homes. The software and kiosk platform are now used to manage compliance by visitors, staff, volunteers and contractors on site at retirement homes and hospitals.
The company raised $6 million for Zipline in a Series A2 last November and has moved into the U.S. nursing home market.
Momsen said they found many similarities between the US and Australian markets.
“In both markets, frontline teams are drowning in compliance burdens. The industry is really looking for a better way because the implications of doing it wrong really hurt. The industry is soaking up millions of dollars in fines for non-compliance, ultimately resulting in consumers getting the worst outcomes,” he said.
“We hear time and time again that staff are stressed and leaving because of the pressure to strike a good balance between delivering quality assurance and managing heavy administrative workloads – compliance of which is the main driver.”
Zipline recently launched a new offering called QuickStart, which uses AI to automatically collect all 15+ documents needed to be compliant and verify that they are legitimate.
Among the startup’s backers, Momsen said SecondQuarter Ventures was a “game-changer” for the Zipline team by capitalizing on the company’s success.
“There are only a few reasons why anyone should join a startup. Do you want to follow an immense career and personal growth trajectory, have a greater impact on the client, see what “great” looks like so you can one day learn what it takes to run your own startup – and finally, have a chance on some financial top,” he said
“Thanks to our collaboration with SecondQuarter, that last point can become a reality.”
SecondQuarter managing partner Ian Beatty said technology companies want to show employees stock options that they can be quite valuable with a liquidity partner.
“Our investment in Zipline.io creates a strong foundation to help employees and early investors capitalize on some of the value they create along the way — and we look forward to the journey,” he said.
