ImageMoverMD, a Madison, WI-based startup developing software applications that allow clinicians and patients to securely transmit pictures and videos taken with mobile devices, has raised $1.6 million from two investors, according to a document filed with federal securities regulators.
The company has now raised more than $4.3 million since launching in 2013, according to SEC filings.
ImageMoverMD CEO Darcey Nett declined to identify the investors or answer other questions related to the financing, citing regulatory restrictions. It appears the company is still out raising money for this round, which is a mix of equity and other securities. The SEC filing shows that the round could grow to as much as $3.45 million.
Doctors, nurses, and other users of the startup’s software can securely share images they’ve captured using their own smartphones, and in a way that doesn’t violate patient privacy laws. Security is a major concern among leaders at hospitals and clinics worldwide; some consider having someone’s health data to be more valuable than having the person’s credit card information.
Moreover, violations of the Health Insurance Portability and Accountability Act (HIPAA), a law that regulates the use, disclosure, and transmission of protected patient health information, can result in fines or even jail time. According to ImageMoverMD’s website, healthcare providers can be fined up to $1,000 for photographing or recording a video of a patient and storing the file in an improper location, a violation of HIPAA.
ImageMoverMD’s software lets healthcare workers take pictures of patients’ wounds, rashes, and other conditions, and send the images to colleagues for help with making diagnoses and treatment plans.
Patients can also use the startup’s mobile app—available for both iOS and Android devices—in combination with the online portals that many U.S. healthcare providers have installed in recent years.
ImageMoverMD was co-founded by two radiologists at the University of Wisconsin Hospital and Clinics. Nett was one of three new leaders ImageMoverMD brought on late last year in a bid to boost sales.
Nett says ImageMoverMD has a handful of “partners,” a label which encompasses both healthcare organizations that license the startup’s tools and other technology companies through which ImageMoverMD sells its software. Its partners include IBM Watson Health (NYSE: [[ticker:IBM]]), Memorial Sloan Kettering Cancer Center, Partners HealthCare, and UC San Diego Health, ImageMoverMD says.
The company currently has 13 employees and its offices are located in StartingBlock Madison, a hub for startups located within a large office building American Family Insurance opened earlier this year.
