The idea is almost too good to be true, or at least a bit too simple; creating a different type of Linkedin that is specific to the health industry. A platform where professionals can not only find out the who was what when it comes to credentials, but where they can also find out about the research those professionals have undertaken and their specialties.
That simple idea, amidst a global pandemic, has become a neccesity, as the industry insiders try to locate who has expertise in particular medicine fields that are directly impacted by the novel virus.
H1 found themselves in this situation. A startup which managed to raise $58M in new financing, at the time when the pandemic reached America earlier in 2020.
After graduating from Y Combinator last January, in a mere 11 months it has managed to receive a total of $70M in financing.
The new financing for the startup was co-led by Menlo Ventures, which doubled its previous investments, and IVP, the growth-stage investment firm.
H1’s rapid and explosive growth can explain their reasoning behind their investments. From Y Combinator until now, the company has a team of 250 employees and after establishing itself as a big player in the U.S. market it is also looking to expand to Asia and Europe in the coming year. H1’s clients are 13 out of the top 20 pharmaceutical companies and in accordance to its last tally, the company boasted 9 million profiles of healthcare professionals globally.
Offering tens of millions of dollars in pre-emptive financing, Menlo Ventures, is said to be extremely pleased with the performance the company has shown until now.
Ariel Katz is the co-founder as well as the CEO of H1. She stated that the company’s goal was to create a platform within the healthcare ecosystem, in order to connect professional workers, similar to the way LinkedIn did in the early 2000s and there has not been such a global platform before, connecting the industry to the right doctors. She continues by saying that the next round of funding, with their amazing group of investors, including Menlo that has been a great partner for them, will help them to create a healthier future and also to continue becoming the largest healthcare professional platform.
Menlo Ventures certainly agrees.
”When we began to work with H1, the early evidence of product-market fit was already apparent, including both initial ‘beachhead’ pharma deals and great logo velocity in smaller biotechs. The feedback obtained from customers was perfect, both in terms of committing to the customer’s success and of the value of the product by the H1 team,” wrote Greg Yap and JP Sanday, Menlo Ventures partners, in a blog post. They continued by stating that one of their dilligence intros even managed to turn into a multi-million dollar customer and investor. H1 was still maturing and not enough to support large demanding enterprise customers. However, currently, at the Series B, the company has built up their execution, managing to gain 13 clients out of the 20 top pharmaceutical companies and are now meeting top-tier venture metrics when it comes to net retention, gross retention and efficiency of sales.