PHILADELPHIA, PA and NEWPORT BEACH, CA (April 27, 2007) – InstaMed announces that it has raised $6.5 Million in a common stock, equity financing. This is the company’s third round of funding since its formation in 2004.
Investors in the round included U.S. Bank National Association (a wholly owned subsidiary of U.S. Bancorp) as well as participation from InstaMed’s existing investors on the east and west coasts, including NJTC Venture Fund and a private equity group based in Newport Beach, CA. Howell D. McCullough, who is U.S. Bancorp’s EVP and CFO of Payments Services and heads the company’s healthcare initiatives, will join InstaMed’s board of directors.
InstaMed will use the proceeds to support the rollout of its integrated healthcare and payment processing platform. InstaMed built its revolutionary platform from the ground up to address the challenges in the healthcare payment process which are growing in complexity with the emergence of Consumer Directed Healthcare. InstaMed processed its first transaction in July of 2005 and has since processed hundreds of millions of dollars. The company currently supports over 100 hospital and clinic locations; 2,000 individual healthcare providers; and billing services, vendors and payers of all sizes.