AlayaCare secures $33M new growth funding from iNovia Growth Fund

AlayaCare has raised $33 million in new funding from inovia capital. As part of the financing, Caisse de dépôt et placement du Québec (CDPQ) and Investissement Québec (IQ) increased their stakes by way of an $18 million secondary purchases of stock from certain existing investors.

In connection with the financing, Dennis Kavelman, GP of iNovia Growth Fund, has joined AlayCare board of directors.

The infusion of new growth capital will allow AlayaCare to focus on research and development to optimize its technology for the needs of any client. As legacy software solutions become outdated, the company is now poised to support even more customers through its market-leading cloud-based platform.

Founded by Adrian Schauer, AlayaCare enables home healthcare providers to deliver best-in-class services and improve care outcomes. Its platform includes back office, client and family portals, remote patient monitoring, telehealth, and mobile care worker functionality in one integrated, highly robust and secure, cloud-based system. AlayaCare is providing the platform for home and community care organizations to propel towards innovation and home care of the future.

inovia capital led a $13.8 million Series B in August 2018.

Known investors include Recap Health Ventures, Fonds de solidarité FTQ, Fondaction, Klass Capital, Fonds Innovexport, Maple Leaf Angels, Chrysalis Ventures.

photo credit:AlayaCare

News Release

AlayaCare Secures $33 Million (CDN) in Growth Funding from Inovia Capital

MONTREAL, July 2, 2019 – AlayaCare, which enables home healthcare providers to deliver best-in-class services and improve care outcomes, today announced that Inovia Capital, Caisse de dépôt et placement du Québec (CDPQ) and Investissement Québec have invested $51-million, buying $33-million in new equity from AlayaCare plus $18-million of stock from early investors.

In the changing world of home healthcare, technology is the new constant. AlayaCare helps home and community care agencies manage all aspects of their business and operations using a single cloud-based SaaS platform. Through this unique platform, AlayaCare:

Improves the patient experience by facilitating client-directed care planning and by offering tools such as real-time remote monitoring;
Improves the caregiver experience through mobile tools that mean better preparedness for home visits and efficiency of task-management; and,
Lowers costs for organizations by streamlining billing and communications, and limiting the need for expensive IT infrastructure.

“Home care is evolving at a frenetic pace, and the market is clearly shifting to a technology-enabled delivery model that expands the boundaries of care,” says AlayaCare CEO Adrian Schauer. “We are grateful that our capital partners, led by Inovia, share this vision and are propelling AlayaCare toward our ultimate goal: keeping millions of people well in the comfort of their homes.”

In many countries, in-person care can be supplemented with remote patient monitoring and virtual visits to support both clients and care workers efficiently. At the same time, the market is experiencing a shift toward integrated care, value-based reimbursement and the rising use of cloud-based software; a digital environment in which AlayaCare’s artificial intelligence and application program interfaces (APIs) can drive optimal health outcomes.

“We are pleased to help AlayaCare deliver on their mission to dramatically improve patient care and outcomes, through this new round of investment from the Inovia Capital Growth Fund,” said Dennis Kavelman, Inovia Capital General Partner. “We first invested in the team and their next-generation home healthcare software at the early stage, and after showing exceptional progress, we’re excited to partner with them to quickly scaleup.”

This latest investment of growth capital will allow AlayaCare to focus on research and development to optimize its technology for the needs of any client. As legacy software solutions become outdated, the company is now poised to support even more customers through its market-leading cloud-based platform.

“AlayaCare brings significant quality-of-life improvements by enabling patients to receive health care at home. Home care solutions are especially adapted to elderly patients, who represent an increasing share of healthcare beneficiaries” said Charles Émond, Executive Vice-President and Head of Quebec Investments and Global Strategic Planning. “AlayaCare tech integration solutions save precious time for practitioners by automating clerical tasks. CDPQ is proud to embark on the next chapter of AlayaCare’s success story and contribute to one of the country’s leading health tech companies.”

“We are proud to support AlayaCare, a major player in the home healthcare sector, and enable this software platform provider to launch an accelerated growth plan and acquire the flexibility needed to develop new markets, seize any opportunities for expansion that present themselves, and increase its presence and positioning in Québec,” stated Guy LeBlanc, President and CEO of Investissement Québec.

AlayaCare, a Canadian entrepreneurial success story, now has over 200 employees and has earned $50+ million in growth capital since its launch in 2014. Its mission is to transform the industry from a traditional fee-for-service model to one that is technology enabled, outcome-focused for patients and delivers better experiences for caregivers.

About AlayaCare

AlayaCare’s unique platform includes back office, client and family portals, remote patient monitoring, telehealth, and mobile care worker functionality in one integrated, highly robust and secure, cloud-based system. AlayaCare is providing the platform for home and community care organizations to propel towards innovation and home care of the future. AlayaCare was founded in 2014. http://www.alayacare.com

About Inovia Capital

Inovia Capital is a full-stack venture firm that partners with audacious founders to build enduring global technology companies. We seek to transform venture capital by perfecting the craft of investing in people first. We roll up our sleeves to serve founders with dedicated, long-term mentorship, a global talent network, and strategic support for global scale. Together, we rewrite the rules of complex legacy industries, push technology frontiers and pursue bold visions of a better future. Inovia Capital manages over US $1B across five funds including early and growth stages, and holds offices in Montreal, Toronto, Calgary, San Francisco and London. For more information, visit inovia.vc.

About Caisse de dépôt et placement du Québec

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2018, it held CA$309.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

About Investissement Québec

Investissement Québec’s mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.

Media Contact Information:

For AlayaCare — Amy Cole, amy@colecomms.ca, 647-287-0025
For Inovia Capital — Melissa Mecca, mmecca@inoviacapital.com, 650-644-8168
For CDPQ — Yann Langlais-Plante, medias@cdpq.com, 514-847-5493
For Investissement Québec — Isabelle Fontaine, isabelle.fontaine@invest-quebec.com, 514-876-9359

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.