Healthcare Financial Platform Cedar Lands $200 Million In Series D Financing

Healthcare financial engagement platform Cedar wrapped up a Tiger Global Management-led $200 million Series D financing round, bringing the firm’s valuation to $3.2 billion. Existing investors Concord Health Partners, Thrive Capital and Andreessen Horowitz also took part in the round, according to a Tuesday (March 9) announcement.

“Our mission has always been to enable exceptional patient experiences and transform healthcare. With this funding, we are in a position to further extend our footprint, help relieve financial burdens for patients and continue innovating to respond to ongoing shifts in the healthcare industry,” Cedar CEO and Co-founder Florian Otto said in the announcement.

Funds from the infusion will be used to widen Cedar’s product plans beyond its signature financial engagement offering as the firm continues to invest in growing its technology platform. The new round will also enable the company to keep working with its development partners and build out additional patient engagement use cases, such as more pre-visit features and tools.

In one case, Yale New Haven Health System (YNHHS) and Cedar will collaborate to build out new “forward-looking product features to further improve patient satisfaction and financial results” via a partnership unveiled earlier in 2021, according to the announcement. In addition to YNHHS, Cedar teams with over 35 healthcare providers throughout the country, including ChristianaCare, Novant Health and Summit CityMD.

“Cedar has emerged as the market-leading, technology-enabled platform helping patients resolve their medical bills in ways that are easier and more relevant, resulting in improved financials for healthcare providers,” Scott Shleifer of Tiger Global Management said in the announcement.

In a previous interview with PYMNTS, Otto said that healthcare billing is an unclear and paper-based workflow that can benefit from customization and advanced technologies to modernize the experience. That’s particularly important as currently, 40 percent of each dollar is collected by healthcare partners, according to Otto.