MedSage Technologies surpasses funding goal by more than halfApril 21-27, 2006 MedSage Technologies has raised $775,000 in new venture funding, more than 50 percent above its original goal of $500,000. CEO Jerry Connelly, who joined the Wilkinsburg-based home health care company in January, said the investors all backed the company previously. They include BlueTree Allied Angels and Innovation Works, but are mostly high net worth individuals who did not want to be identified, Connelly said. The money will be used as working capital. But medSage, which also raised $900,000 in venture capital last year, expects to increase employment by one-third, hiring five people within the next few months. “They want to build infrastructure so they can add more clients,” said Catherine Mott, managing partner of Wexford-based BlueTree Capital Group LLC, which overseas BlueTree Allied Angels. “What we like most is medSage has the significant challenge of keeping up with demand. It’s a good problem to have.”MedSage’s interactive voice recognition software helps health care providers monitor the needs of home-based patients. The company has created three patient management systems that track respiratory unit dose medication, follow-up for patient compliance, and supply reorders. It currently has more than 40 customers across the country who track more than 100,000 patients with conditions ranging form sleep apnea to diabetes. Connelly would not disclose medSage’s sales, but expects year-over-year revenue to increase at least 400 percent in 2006. It is not yet profitable. MedSage’s four-member board is also expected to add three new directors – Don Wagner, a former entrepreneur who invests through BlueTree; David Osterhaus, Morneau Sobeco’s managing partner, and Dennis Meteny, a former president of Respironics Inc, who launched TeeMyn LLC, a Gibsonia-based business advisory firm, in February. |
 reprinted from the April 21-27, 2006 print edition of the Pittsburgh Business Times |