CLEVELAND, July 7 JumpStart Ventures, which invests in and partners with innovative, early-stage companies in Northeast Ohio, recently closed two new investments. These investments, which are coupled with intensive entrepreneurial development assistance, bring the total number of investments made by JumpStart Ventures to 13 investments in the past 12 months.
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A $250,000 investment commitment went to CoverMyMeds LLC, the newest JumpStart Ventures portfolio company. The Twinsburg, Ohio healthcare technology and services company has developed web and phone-based tools that expedite and automate the submission of Prior Authorization (PA) requests to patients' health insurance plans. PA and other Coverage Determination forms are required after coverage of a patient's prescription has been rejected by their health plan. Before CoverMyMeds, submitting a PA was a manual process, and universally frustrating and expensive for physician offices and pharmacies. Because of this, PAs often were not submitted, leading some patients to go without needed medication. CoverMyMeds' tools cut the process to less than five minutes, a reduction of at least 70 percent. The company will use the fund and entrepreneurial development assistance from JumpStart Ventures to further develop its launched product and begin the process of integrating its system into the doctor, pharmacy, and insurer work streams.
"CoverMyMeds offers pharmacies and physicians a simple, easy-to-use solution to a complex problem," said CoverMyMeds Co-Founder Sam Rajan, R.Ph. "Because of this, the value proposition to our clients is the ability to capture lost revenue at a very reasonable cost." Rajan and Co-Founder Alan Scantland were previously on the senior management team at MemberHealth, a pharmacy benefits management company in Solon, where they led a management team that grew the company from $55 million to $1.3 billion. MemberHealth was acquired by Universal American Financial Corporation for $630 million.
JumpStart Ventures also invested an additional $100,000 in existing portfolio company, ECHOGEN Power Systems of Akron. ECHOGEN has developed a proprietary waste heat to power engine for use in power generation, industrial, and commercial market sectors. "ECHOGEN's Waste Heat Recovery System Beta Test Program with an Ohio utility is on track and we expect continued positive results to support our commercialization initiatives," said Michael Persichilli, VP of Business Development and Strategic Relationships. "The level of interest among energy-intensive industries, utilities, and strategic partners has been exciting." This investment, which brings JumpStart Ventures' total amount invested to $500,000, will be used to complete development of a second pilot engine that will improve upon cost position and performance compared to the first engine.
The 13 investments made by JumpStart Ventures include nine investments in new companies and four additional investments in existing portfolio companies and is a fiscal year record for the organization. Since inception, JumpStart Ventures has made 64 investments in 48 companies.
About JumpStart Ventures
JumpStart Ventures (www.jumpstartinc.org/ventures) invests in and forges partnerships with innovative, early-stage Northeast Ohio companies that have the potential to generate $30 to $50 million in revenues in five to seven years. It helps companies accelerate their time to venture-readiness by bundling guidance from experienced Venture Partners with seed investment capital. JumpStart Ventures is the investment arm of JumpStart Inc., a nationally recognized non-profit organization creating economic transformation by providing resources to entrepreneurs leading high potential early-stage companies.
About CoverMyMeds LLC
CoverMyMeds LLC (www.covermymeds.com) is a fast-growing healthcare technology and services company in Northeast and Central Ohio. Founded on the belief that no patient should be denied access to a medication simply because the administrative burden is too great, CoverMyMeds delivers tools that greatly simplify the process providers use to submit Prior Authorization and Coverage Determination forms. CoverMyMeds is a portfolio company of BioEnterprise and JumpStart Ventures.
About ECHOGEN Power Systems
ECHOGEN Power Systems (www.echogen.com) is commercializing a breakthrough power generation cycle utilizing supercritical CO2 (ScCO2) as the working fluid to convert heat to electricity. ScCO2 is environmentally benign, non-toxic, and has favorable heat and mass transport properties which allow for an energy dense, compact thermodynamic system. ECHOGEN's systems will enable its customers to convert waste heat to useable energy, lower their operating costs and reduce their overall carbon footprint. ECHOGEN is a private/investor owned company with its Corporate office and Research Lab in Akron, Ohio.
SOURCE JumpStart Ventures