Medsphere, a provider of affordable and interoperable EHR solutions, has closed a $7.5 million venture loan from Horizon Technology Finance Corporation, a specialty finance company that provides capital in the form of secured loans to venture capital backed companies. The venture debt will use the funds for working capital purposes to grow their customer base and expand product offerings. Unlike traditional bank lending, venture debt is defined as a form of debt financing for venture equity-backed companies that can be used like equity and includes warrants.
Medsphere’s OpenVista is a portfolio of clinical products and services that leverages an electronic health record (EHR) system developed by the Department of Veterans Affairs. This VistA EHR is widely credited with helping transform the VA into the nation’s most efficient and clinically effective healthcare organization. OpenVista, the most fully commercialized VistA offspring, is a responsible reapplication of the VA’s $8.5 billion investment, which recent studies show has yielded billions in benefits, primarily from the near elimination of medication administration issues and duplicate testing.
Irv Lichtenwald, President and CEO of Medsphere, stated, “By providing our company with a customized financing solution that meets our immediate capital needs and increases our ability to grow our customer base and enhance our product offerings, Horizon demonstrated its knowledge and experience as a leading venture lender to the healthcare and technology industries. With Horizon’s ongoing partnership, we are well positioned to take advantage of our strong pipeline of potential opportunities.”
