Element5 announced on Tuesday that it has raised $30 million in a Series B. This latest round of funding was led by the New York-based venture capital and private equity firm Insight Partners.
Insight Partners has a history with Element5. Last year, the VC and PE firm also led Element5’s $15 million Series A.
“[Insight Partners] has a lot of experience in the post-acute space,” Joe Randesi, co-founder and CEO of Element5, told Home Health Care News. “They’ve done significant post-acute investments in the past. We know that they’re an investment company and firm that really understands the market we’re in, which we thought was really important.”
Founded in 2019, Element5 helps home health agencies and other post-acute care providers automate time-consuming tasks, including the authorization process. The San Jose, California-based startup does so by using a mix of AI and robotic process automation (RPA).
Since its 2021 funding, Element5 has made significant strides in building its workflow marketplace, according to Randesi.
“That’s really key to what we do,” he said. “We are intentionally vertical. When you do that you have an opportunity to build products and workflows that resonate with the market — and build them really rich and robustly. We’ve done that. We’ve expanded our catalog quite a bit, and we scaled our team to really support the sales demand.”
Element5’s latest funding will be geared towards building on the foundation the company previously established with that initial investment.
“We’re 100% focused on workflow automation,” Randesi said. “It’s a target-rich environment. [We plan on] building robustness around the repeatable workflows that we’re building. Every single day, we’re on phone with clients, with new ideas. We take that feedback, and we decide, ‘Is this worth building into a workflow?’”
The extension of Element5’s products is also top of mind for Randesi. The company is building analytics, reporting and communication tools along with its workflow automation.
In addition to investing in the acceleration of its product, some of the $30 million will aid the company’s growth efforts by allowing Element5 to expand its team.
Ultimately, Element5 views its place in the home-based care ecosystem as an extension of the workforce and the operational teams.
Its value-add boils down to its ability to help mitigate the impacts of staffing shortages, according to the company.
“[Providers] have growth plans, and they’re scared because they know that for every X number of patients they add, they’re gonna go have to add X number of [full-time employees],” Randesi said. “Their current [full-time employees] are completely burned out and exhausted. They’re probably not even working at the top of their license because there’s so much work to do. Our value add is leveling up all the current workers. We are taking away the administrative, robotic, quote-unquote, processes that these humans are doing all day, every day.”
To date, Element5 has raised $48.5 million in total capital.
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