AcuityMD Secures $7M Funding to Revolutionize Medical Hardware Tracking

Simplifying Choices in a Complex Medical Landscape

In today’s world, consumers are often overwhelmed with options. Startups that streamline decision-making processes are therefore increasingly valuable. Career Karma assists students in selecting appropriate tech bootcamps, while Stackin’ guides millennials through the realm of neobanks and savings applications. Now, a new company based in Boston is focused on aiding physicians in staying current with the latest medical devices available.

Introducing AcuityMD and its Seed Funding

Founded in 2019 by Mike Monovoukas, Lee Smith, and Robert Coe, AcuityMD is an enterprise software company aiming to consolidate fragmented medical device data. The company recently secured a $7 million seed round led by Benchmark to further this goal.

As part of this investment, Benchmark General Partner Eric Vishria will be joining AcuityMD’s board of directors. Ajax Health, which previously invested $100 million in medtech companies in 2019, also participated in the funding round. Monovoukas stated that the seed capital will be used to expand the current eight-person team and prioritize product development.

How AcuityMD Works: A Data-Driven Platform

AcuityMD functions as a data platform that monitors the complete lifecycle of a medical device – from initial sale to patient outcomes following surgical procedures. It compiles industry and market data to create a comprehensive profile for each individual product.

Monovoukas explained that surgeons often struggle to stay informed about the newest medical technologies after completing their training. He characterized the challenge as a problem of software and coordination, emphasizing the need to efficiently deliver available data to decision-makers.

The Genesis of AcuityMD: A Personal Experience

Monovoukas’s motivation for creating AcuityMD stemmed from a personal experience involving a family member’s surgeries. He observed that manufacturers possessed valuable information regarding device usage, but this information wasn’t consistently shared with surgeons.

He realized that the issue wasn’t a lack of competence among medical professionals, but rather a breakdown in information transfer. This realization was particularly striking given the data-driven nature of modern healthcare.

Focusing on Device Manufacturers as Key Customers

Having previously worked at Bain & Company and a medical device company, Monovoukas recognized the potential of using data to improve patient outcomes. However, the AcuityMD team ultimately decided to target device manufacturers as their primary customer base.

This decision was influenced by the difficulties associated with selling to hospitals and physicians. Furthermore, Monovoukas noted that performance data on medical devices is crucial for sales teams to refine their strategies and target their pitches effectively. Manufacturers desire insight into market trends, including identifying high-volume surgeons and tracking long-term device performance.

Future Potential: Real-Time Data and Streamlined Logistics

The data collected by AcuityMD could enable sales representatives to accurately predict the financial impact of targeting specific surgeons. The company is positioning itself to become a real-time database for medical devices.

Looking ahead, AcuityMD envisions potentially offering a service similar to same-day shipping, connecting manufacturers directly with surgeons. While logistical challenges exist, Monovoukas acknowledges the potential for predicting inventory needs at each facility, drawing parallels to companies like Medinas.

Currently, AcuityMD focuses on leveraging data from sources like Medicare CMS and insurance companies, minimizing the need for direct action from healthcare providers. A key challenge lies in ensuring the quality and reliability of these data sources, a metric the startup is still actively defining.

“I heard someone once say that any digital health company eventually becomes a healthcare data company,” Monovoukas concluded. “We’re approaching things a little bit differently.”