FARMINGTON HILLS, Mich., May 26, 2009 – Beringea, one of the managers of the InvestMichigan! Growth Capital Fund and Michigan’s largest venture capital firm, announced an investment in Bloomfield Hills, Mich.-based gloStream, a healthcare software company that develops and sells certified electronic medical record (“EMR”) and practice management (“PM”) solutions. Beringea and members of gloStream’s Executive Management Team co-led the company’s $7.5 million series B financing round. The capital will be used to bolster virtually all areas of gloStream, including development, marketing and sales, and will be deployed immediately as the company looks to hire for nearly all internal teams.
Beringea’s investment was made through its InvestMichigan! Growth Capital Fund (the “Fund”), which is part of the $300 million InvestMichigan! Fund created by Governor Jennifer Granholm. The Fund targets a broad range of sectors and is charged with generating strong returns for investors and growing the next generation of Michigan companies.
“gloStream has demonstrated that they are one of Michigan’s most innovative healthcare companies and have the capability to spur job growth locally while also transforming healthcare nationally,” said Beringea director Michael Gross. “gloStream offers the only integrated EMR/PM solution on the market embedded with Microsoft Office, which is easy to deploy and use and already helping more than a thousand users nationwide improve the efficiency of healthcare delivery.”
The series B financing comes after passage of the American Recovery & Reinvestment Act (“ARRA”), which was signed into law by President Obama on February 17, 2009. The ARRA allocates $20 billion toward healthcare IT, including up to $64,000 per doctor –through the Centers for Medicare and Medicaid Services – for implementing EMR technology. With the stimulus encouraging hundreds of thousands of doctors to implement EMR technology for the first time, it’s critical that doctors have customizable solutions that are easy to deploy, easy to use and backed by local support.
“Beringea’s investment is an important vote of confidence in our people, our products and our vision,” said Mike Sappington, gloStream’s CEO. “It’s also recognition that Michigan-based companies are taking a leadership role when it comes to national healthcare IT initiatives and creating technology that will drastically improve the care that doctors can provide to their patients.”
Bloomfield Hills, Mich.-based gloStream provides physicians and healthcare facilities with certified electronic medical record and practice management solutions delivered and supported through a nationwide network of local technology partners. gloStream products are secure, easy-to-use applications and the only integrated EMR/PM solutions on the market embedded with Microsoft Office. Through a simple user interface, robust voice recognition technology, and single-click access to all patient information, gloStream products help doctors improve patient care by streamlining workflow and creating efficiencies in office administration. www.glostream.com
Beringea is an international private equity and investment banking firm headquartered in Farmington Hills, Mich., with offices in Los Angeles, London and Shanghai. Beringea manages more than $400 million in venture capital funds, investing in a range of growth-oriented companies with the potential for strong returns for investors. Its funds include the InvestMichigan! Growth Capital Fund, InvestCare Partners, Global Rights Fund II and the ProVen family of venture capital trusts. www.beringea.com
About the InvestMichigan! Fund & Business Leadership Council
The InvestMichigan! Fund is an economic growth initiative created by Gov. Jennifer Granholm focused on retaining and attracting businesses to the State of Michigan and further developing the State’s entrepreneurial ecosystem. The Fund has been divided into two pools of capital: one targeting smaller companies with high growth characteristics (InvestMichigan! Growth Capital Fund), and another targeting more mature companies seeking a change of control through a buyout transaction (Michigan Opportunities Fund). The Growth Capital Program is co-managed by Beringea, a Michigan-based venture capital firm experienced in geographically targeted investment programs, and Credit Suisse’s Customized Fund Investment Group, a highly-respected global network of funds and co-investments.
Companies that become part of the portfolio and their management teams will be supported by the Fund’s Business Leadership Council comprised of Michigan business leaders who offer support, guidance and access to business relationships. Members include: Jon Barfield, Chairman & President, The Bartech Group; John Brown, Chairman, Stryker Corporation; Ben Carter, EVP & COO, Detroit Medical Center; James Epolito, President, Delta Dental of Michigan; Mark Fields, Ford Motor Company; Dan Gilbert, Chairman, Quicken Loans, Inc.; James Hackett, President & CEO, Steelcase, Inc.; Jim Herbert, Chairman & CEO, Neogen Corporation; George Jackson, President & CEO, Detroit Economic Growth Corporation; Thomas Kinnear, Ross School of Business, University of Michigan; Josh Linkner, Founder & CEO, ePrize, LLC; Andrew Liveris, Chairman & CEO, Dow Chemical Co.; Mark Murray, President, Meijer, Inc.; Bob Naftaly, Former COO, BCBS; Roger Penske, Chairman & CEO, Penske Corp.; Rich Peters, Managing Director, Transportation Resource Partners; Mary Petrovich, CEO, AxleTech International; Sandra Pierce, President & CEO, Charter One Bank (MI & IN); Rebecca Smith, East Mich. Regional President, Huntington National Bank; and, Ken Whipple, Chairman, CMS Energy.