NEW YORK, March 9, 2021 /PRNewswire/ -- Cedar, an innovative patient engagement and financial technology platform, today announced it has closed $200 million in Series D financing led by Tiger Global Management, bringing the company's valuation to $3.2 billion. The company, which boasts more than $350 million in total funding to date, will use the new capital to continue meeting skyrocketing demand for the exceptional, patient-centric digital health experiences provided through its platform. Existing investors Andreessen Horowitz (a16z), Thrive Capital and Concord Health Partners also participated in the round.
This funding comes at a time when meeting and exceeding consumer preferences around digital experiences is no longer optional for healthcare providers. As COVID-19 has accelerated the digital shift in healthcare, demand for Cedar's product has increased significantly, with the company quadrupling its business throughout 2020. Since the onset of the pandemic, 40% more patients have switched providers over a poor digital experience and almost 50% wish their digital health experience was more intuitive, similar to Netflix, Amazon or Uber. Providers are looking for partners to help them deliver top-notch patient experiences and turning to platforms that prioritize the end-to-end patient journey, including the financial experience. Through thoughtful workflows and empathetic design, Cedar's core platform delivers a modern consumer experience.
"Now, more than ever, patients deserve a healthcare experience that prioritizes their needs, and yet there are still so many problems on the financial side, which negatively impact their medical journey," said Florian Otto, CEO and co-founder of Cedar. "Our mission has always been to enable exceptional patient experiences and transform healthcare. With this funding, we are in position to further extend our footprint, help relieve financial burdens for patients and continue innovating to respond to ongoing shifts in the healthcare industry."
Since launching in 2016, Cedar has experienced significant growth resulting from its industry-leading levels of patient satisfaction, digital engagement and bill resolution, now engaging with more than 300,000 patients a day. And while healthcare providers typically see a 30% lift in patient payments, Cedar also helps nearly 3-in-4 health system patients who interact with its platform avoid collections by providing clarity into healthcare costs and pathways to affordability, all while maintaining an 88% patient satisfaction score.
As the company continues to invest in scaling its technology platform, funds from this round will be used to broaden Cedar's product roadmap beyond its flagship financial engagement product, making the healthcare experience more personalized, transparent and convenient. Using the momentum from the company's Series C in June 2020, this new round of funding will enable Cedar to continue collaboration with its development partners and build out more patient engagement use cases, including additional pre-visit functionality and tools that provide more pathways to affordability and actionable price transparency, with the ultimate goal of delivering better experiences and outcomes for both patients and providers. For example, through an Innovation Partnership announced earlier this year with Yale New Haven Health System (YNHHS), Cedar's only strategic health system partner in the Northeast, YNHHS and Cedar will be working together to develop new forward-looking product features to further improve patient satisfaction and financial results.
"Cedar has emerged as the market-leading, technology-enabled platform helping patients resolve their medical bills in ways that are easier and more relevant, resulting in improved financials for healthcare providers. We are very excited to back Florian and the team as they continue to optimize patient-centric financial engagement in healthcare," said Scott Shleifer of Tiger Global Management.
Coupled with its impressive and rapid success, the funding further positions Cedar to capture the market and establish itself as the leading comprehensive healthcare consumer engagement platform. Cedar now partners with more than 35 healthcare providers across the United States, including Yale New Haven Health (YNHHS), Summit CityMD, Novant Health and ChristianaCare.
To learn more about Cedar's innovative platform, visit https://www.cedar.com/.
Cedar is a healthcare financial engagement platform for hospitals, health systems and medical groups that clarifies and simplifies the financial experience for patients, improving bill resolution and payment outcomes for providers. Recently recognized as a leading solution provider in the patient financial experience space by KLAS Research, Cedar facilitates patient-centric financial engagement across the care journey. To learn more, visit www.cedar.com.