GTESS Corporation Raises $10.0 Million from General Catalyst Partners, Kodiak Venture Partners and existing investors
January 06, 2004
GTESS Corporation, a leading provider of business process outsourcing services for the healthcare industry, today announced that the Company has secured $10 million in its first round of institutional investment, led by General Catalyst Partners and Kodiak Venture Partners. GTESS' current investors also participated in the round.
"In the past two years, GTESS has aggressively built its customer base, expanded the suite of services offered and demonstrated significant ROI to clients," said Deborah M. Gage, CEO and president of GTESS. "This latest funding round enables us to broaden our service model, continue our technology leadership, develop key channel partnerships and increase presence in our targeted healthcare market segments."
GTESS offers outsourced services to managed care organizations and benefit administrators, resulting in increased automation in claims processing at significantly lower costs. The Company's "virtual front end" offering, includes functions such as mailroom services, data quality improvement for paper and electronic claims, paper data conversion, repricing facilitation between payers and managed care organizations, eligibility and provider verification and management, electronic data interchange between payers and managed care companies, and document management services.
"I'm proud of the Company's progress since our initial investment, and I'm confident that the strong financial backing and solid track record of our new partners will help drive continued growth and broadened market impact," said GTESS chairman, Guy B. Snowden, founder and partner of venture capital provider SnowMark Corporation.
"GTESS attracted our attention because it performs against a vision of the healthcare industry in which expert, full-fledged business process outsourcing is applied to claims processing -- one of the most complex and costly transactions in the industry. With exceptional leadership, proprietary technology and a specialized healthcare application at its core, GTESS has grown revenues, built an impressive customer list and developed a suite of services that are being recognized as adding significant value," said John Simon, managing director of General Catalyst Partners. Simon will join GTESS' board of directors.
Lou Volpe, managing general partner of Kodiak Venture Partners, also will join the GTESS board of directors. "GTESS is a great fit for Kodiak, because we focus on technology platforms that solve real customer problems and have sustainable business models. GTESS has certainly proved that it has the software, processes and management practices in place to anticipate - and solve -- on-going problems of connectivity between providers, payers and health plans in the healthcare sector. We believe there is real opportunity here as GTESS provides its specialized technology to automate the growing number of manual processes in this space."
Portico Capital Securities LLC, a Greenwich, CT merchant bank focused on the Information Services industry, served as financial advisor to GTESS. Jackson Walker LLP served as company counsel and Testa, Hurwitz & Thibeault, LLP served as counsel to investors.
SnowMark Corporation has provided seed and growth capital, as well as executive management services, to GTESS since 2001. SnowMark invests in early-stage companies, offering a combination of capital and hands-on management expertise to boost their growth and success potential. Located in Vero Beach, FL, SnowMark's principals and associates work with companies involved in healthcare, technology and hospitality industries. For more information, please visit www.snowmark.com
About General Catalyst Partners
Founded in 2000 and headquartered in Cambridge, Mass., General Catalyst Partners is the private equity partner for entrepreneurs, early-stage companies and transformational companies that seek to build innovative software and technology platforms into industry-leading companies. By leveraging its principals' deep operational expertise, General Catalyst helps portfolio companies improve their likelihood of success through business building and partnership development assistance. For more information, please visit www.generalcatalyst.com
About Kodiak Venture Partners
Kodiak Venture Partners is a Waltham, Massachusetts-based venture capital firm focused on seed and early-stage investments in emerging communications/IT, semiconductor and software companies. With a focus on the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak's investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building and funding market leaders. For more information, please visit www.kodiakvp.com
About GTESS Corporation
GTESS Corporation provides claims processing-related business process outsourcing (BPO) solutions for the healthcare administrative services market, enabling managed care organizations and benefits administrators (payers) to reduce costs and improve the quality of their operations.
About Portico Capital
Portico Capital Securities LLC is a mterchant bank that provides investment and advisory services exclusively to Information & Business Services companies. Portico works across the private equity spectrum, from venture capital to later stage buyouts. Additionally, Portico provides strategic M&A advisory services to public and private companies within its industry focus areas, including payments, data analytics, transaction processing, and security information services. For more information, visit http://www.porticocapital.com