Irvine-based PatientFi LLC, a financing platform used by healthcare providers to offer their patients an alternative way to pay for elective procedures, closed an oversubscribed $25 million Series B round last week.
The deal marks the largest reported funding round for a privately held company based in Orange County so far this year.
The funding round was led by a new investor in the company, Questa Capital, a San Francisco-based healthcare venture capital firm, with participation from existing investors of the company.
Questa co-founder and Managing Partner Brad Sloan will join PatientFi’s board of directors as part of the deal.
PatientFi, founded in 2017, has now raised close to $70 million to date, co-founder and CEO Todd Watts told the Business Journal.
“I don’t think we’ve ever been positioned better for success than we are right now,” Watts said.
PatientFi said it will put the latest funding toward amping up sales and marketing, launching new products and developing more partnerships, particularly in the fertility space.
The company generated about $45 million in revenue last year and has nearly doubled its revenue every year since its founding, according to Watts.
Growing Network
PatientFi is in every state, and has added over 4,000 practices to its provider network since 2019, according to Watts.
The company’s network includes providers across the plastic surgery, medical spas and dentistry industries, with an emphasis on medical aesthetics.
PatientFi last year added 1,359 providers, increasing its network by almost 50%.
Through its partnerships with banks and credit unions, PatientFi can provide loans from $200 to $50,000 to pay for more expensive elective procedures.
PatientFi collects fees on transactions from clinics and financial entities that buy its loans.
“98% of our patients apply on the phone or in any office, get an immediate approval and can check out that exact same day with providers getting paid within 24 hours,” Watts said.
Privi Program
Watts said PatientFi has expanded beyond just patient financing.
“Something we’ve built out and will continue to invest in is loyalty programs,” Watts said.
The company is continuing to build out its subscription platform called Privi, which launched last April.
Privi, a first-of-its-kind “aesthetics membership platform,” allows patients to pay for beauty products and services on a subscription-based model while earning loyalty rewards.
Instead of paying a large sum each time they go for a visit, patients pay monthly for an annual treatment plan that’s customized to them.
“Practices love it because it keeps patients coming back while patients get to pay over time,” Watts said.
Prices range from $99 a month for four annual toxin injections up to $269 a month for services such as lip filler, laser resurfacing and body contouring.
PatientFi partnered with Swiss dermatology company Galderma for Privi, and since launching, has seen “huge success across the country with the product and enrollment,” Watts said.
Privi last September was the recipient of the Best in Consumer Technology Innovation Award at Octane’s High Tech Awards.
The medical aesthetics industry is an “enormous untapped market opportunity,” according to company officials.
They say the industry has climbed 10% annually since 2010 and is forecasted to grow to $40 billion over the next several years.
CORRECTION: A bio on Todd Watts, included in last week’s listing of nominees for the 2024 Excellence in Entrepreneurship Awards, incorrectly identified his title at PatientFi. He is the CEO.
