ArborMetrix closes $7 million funding round and signs lease to move to Ann Arbor's Liberty Street
It’s been a busy week for ArborMetrix, Inc.
The Ann Arbor-based health care analytics company signed a lease for a new office space on Liberty Street on July 9 and announced Tuesday morning that it closed a $7 million Series B funding round.
ArborMetrix is focused on the data involved in the health care industry. The company, originally spun off of technology developed at the University of Michigan and Dartmouth University, provides real-time data dashboards to hospitals and insurance companies to help them make better decisions.
"ArborMetrix's analytics platform enables health care providers and payers to evaluate the effectiveness of evidence-based care, which will be essential for survival as the health care system evolves," Arboretum Ventures managing director Paul McCreadie said in a statement. "And, even during this transitional period, they can offer a return on investment in months — not years.”
CEO Brett Furst said in a statement that ArborMetrix has been experiencing exponential growth and the recently completed funding round will allow for further expansion.
Part of that expansion will be a move to new offices at 339 E. Liberty St. in downtown Ann Arbor. The company will be moving into an 8,408-square-foot space formerly occupied by the MLive Media Group.
Jim Chaconas and Brendan Cavender of Colliers International Ann Arbor represented the landlord in the deal, which brings the building owned by Dan Cramer and HandiCraft LLC up to 98 percent occupancy.
ArborMetrix will move from its current location on Plymouth Road near the North Campus Research Complex to its new office space sometime in the fall of this year. The company will join the downtown “tech hub” that is home to a number of established companies and startups focusing their efforts on software development.
“The [company’s] success is generating escalating national interest and we’re excited to join forces with Arboretum Ventures, a venture capital firm with deep health care industry experience, to help ArborMetrix achieve its full market potential,” RPM Ventures managing director Tony Grover said in a statement.
As part of the investment, Grover will join McCreadie on ArborMetrix’s board of directors. Venture capital firms that make significant investments in startup companies often gain representation on the company’s board.
“We’re fortunate to partner with these two outstanding companies to bring ArborMetrix additional support and resources,” Furst said in a statement.
“ We look forward to continuing to arm health care providers and payers with the most advanced analytics they need to today’s dynamic health care environment to help deliver the highest quality care at the lowest possible costs.”
University of Michigan MBA and Ph.D. students manage the Wolverine Venture Fund, which also participated in the round. The $5.5 million fund is based in the Zell Lurie Institute for Entrepreneurial Studies in the Ross School of Business and invests in a variety of industries.
The fund has invested in more than 20 companies, and often partners with established local venture capital firms. Co-investors in recent deals have included EDF Ventures, Arboretum Ventures, RPM Ventures and Early Stage Partners.
Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Get in touch with Ben at 734-623-2528 or email him at firstname.lastname@example.org. Follow him on twitter @BFreedinA2