Austin health tech firm ClosedLoop.ai raises $11M

Austin-based ClosedLoop.ai, a health care techology company, has raised $11 million as it looks to add to its team and product offerings.

The investment round was led by Greycroft and .406 Ventures and included investment from Silicon Valley Bank and Meridian Street Capital.

ClosedLoop offers a health care data science platform, using artificial intelligence and automation tools to build and deploy predictive models to identify opportunities for improving health care and reducing costs. It generally serves hospitals and insurance companies.

Entrepreneurs Andrew Eye and Dave DeCaprio founded the company in 2017.

Eye, the company’s CEO, said the company will to use the funding to build out its sales and marketing teams and to add more engineers. He said the company plans to grow its current 23-person workforce to about 50 by the end of next year.

Eye said the company’s technology is useful as hospitals and insurance companies focus more on value-based service models, instead of fee-for-service models.

“If you’re a hospital system, and you don't have a team of data scientists, you probably care about the same problems as most other hospitals and insurance companies,” Eye said. “You care about predicting things like, who's most likely to be admitted to the hospital or who's most likely to develop chronic disease, who is most likely to no show for appointments.”

Ian Sigalow, co-founder and partner of Greycroft, said his firm is excited to invest in ClosedLoop.

"Physicians are being asked to do more than ever before. With advanced technology, ClosedLoop brings innovative AI models to clinical workflows with a 100% deployment rate and continues to positively impact the future of practices and improve patient outcomes,” Sigalow said.