NEW YORK--(BUSINESS WIRE)--In its mission to simplify the complex payment process that plagues the prescription drug claims industry, Truveris, Inc. announced it has closed a $3.8M oversubscribed initial round of venture funding led by GSA Venture Partners and joined by New Atlantic Ventures and First Round Capital. Truveris’ automated pharmacy benefits review service audits prescription claims to validate accuracy, ensure regulatory compliance, and manage pharmacy spend. The company will use the new funds to expand product development and field operations reaching government entities, health insurance companies, self-insured corporations and unions across the United States.
“Every two weeks, invoices for over $12 billion in prescriptions claims are paid without review, 5 percent of which are inaccurately billed. The potential savings here are extraordinary,” said Steve Brotman, managing partner, GSA Venture Partners.
Prescription drugs represent the fastest growing cost segment of health care and transparency, oversight and cost containment have become paramount. Traditionally, health insurance companies and self-insured corporations outsource to Pharmacy Benefit Managers to more economically process prescription drug claims. Yet the billing process is so complex it is nearly impossible to catch errors. For the first time, Truveris allows payers the ability to verify and pay Prescription Benefit Managers only for correctly priced and adjudicated claims, prior to payment. Truveris automatically reviews claims for cost accuracy, member cost share, eligibility, fraud, Sarbanes-Oxley (SOX) compliance, Retiree Drug Subsidy (RDS) compliance, and a host of other health analytics.
“The Truveris team encompasses a unique blend of deep industry expertise, software development talent, and drive to innovate what has historically been a conservative industry,” said Scott Johnson, founding managing partner, New Atlantic Ventures.
Since Truveris was founded in 2009, it has reviewed more than 100 million prescription claims, attracted 30 customers and brought together seasoned talent from University Health Plans, Hewitt, Fairview Pharmacy Services and Bioscrip. With this new round, Steve Brotman of GSA Venture Partners and Scott Johnson of New Atlantic Ventures have joined the board of directors.
“I rarely see a business with an ROI this compelling. We are thrilled to be investors in Truveris,” said Howard Morgan, managing partner, First Round Capital.
“We believe that in this day and age of informatics and cloud computing, payers should be empowered to review the accuracy of multi-million dollar invoices prior to payment,” said Steven Marcus, president, Truveris. “Truveris has a tremendous market opportunity in front of it, and the company now has the capital to capture it. We are fortunate to have assembled a top-tier investment team, and look forward to accelerating our growth.”
Truveris helps payers of pharmacy benefits validate claim payment accuracy, ensure regulatory compliance, and manage pharmacy spend with their scalable, automated, easy to implement claims analysis engine. For more information, visit www.truveris.com.
About GSA Venture Partners
With over $100 million under management, GSA Venture Partners (formerly Greenhill SAVP) makes early stage venture investments in technology-enabled services and business information services companies. Prior fund manager investments include Medidata Solutions (NASDAQ: MDSO), LivePerson (NASDAQ: LPSN), OpenWave (NASDAQ: OPWV), YellowJacket (acquired by the Intercontinental Exchange, NYSE: ICE), UGO Networks (acquired by Hearst Corporation), and KnowledgeStorm (acquired by TechTarget, NASDAQ:TTGT.) For more information about GSA Venture Partners, please visit www.gsavp.com.
About New Atlantic Ventures
New Atlantic Ventures is an early stage, technology-focused venture capital firm investing actively in digital media and electronic commerce companies. Collectively its partners have helped entrepreneurs start more than 100 companies including DivX, EnerNOC, Massive and Mobile365. Returns on its most recent funds rank in the top ten percent of all venture funds nationally. New Atlantic Ventures manages $225 million from offices in Cambridge, MA and Reston, VA. For more information, go to www.navfund.com.
About First Round Capital
First Round Capital is a seed-stage venture capital firm dedicated to helping talented entrepreneurs build remarkable companies. First Round Capital typically funds pre-revenue companies – and often provides a company’s first outside capital. As former entrepreneurs, the partners at First Round understand the challenges of launching a new enterprise, and offer insight and expertise that are as valuable as its venture capital. The firm has invested in over 80 early stage companies, and additional information on First Round Capital is available at www.firstround.com.