BOSTON, MA--Laudio recently announced it has completed a $7.3 million Series A round of financing. Laudio delivers an automated platform for health systems to drive real-time, personalized engagement between nurse managers and their teams, creating a culture that supports nurse management and reduces nurse turnover and burnout. The new funding will be used to accelerate the company’s vision to transform the culture of health systems, creating an environment that supports engaged employees, high quality, safety, and patient satisfaction. The funding was led by InHealth Ventures and .406 Ventures with participation from MemorialCare Innovation Fund, and other existing investors.
“Laudio has developed the most advanced technology in the industry to address one of the biggest and most challenging problems healthcare professionals in large hospital systems face – burnout and turnover,” said Liam Donohue, Managing Partner at .406 Ventures. “The Laudio Team combines their deep domain expertise in the healthcare industry with new, cutting-edge technology to operationalize leadership best practices and drive an engaged culture.”
As large health systems continue to look for operational efficiency gains, improving retention and productivity of their front-line caregivers has become a top priority. Studies show the average nursing staff turnover rate is 16 percent per year, and that the average cost of replacing one nurse is $66,000. As a result, hospitals are forced to spend $5-10 million annually on nursing turnover alone. This expense is even greater when extended to all health system staff, beyond nursing. The Laudio platform is giving customers like Boston Medical Center and Carle Foundation Hospital an automated approach for front- line managers that enables them to have more meaningful interactions with their staff.
"The criticality of enhancing the day-to-day work environment of nurse managers and their staff is not unique to North America," said Dr. Benedict Evans, Managing Director at InHealth Ventures. "Research data shows that the issues are universal around the globe. We are delighted to contribute to Laudio's continued innovation as they expand into new markets internationally. Laudio is tackling this problem head-on with an innovative approach that will be transformational for health systems, and we are eager to implement the platform across InHealth’s clinical operations in the UK
“We are very excited to be partnering with .406 Ventures, InHealth Ventures, and MemorialCare Innovation Fund in our quest to deliver a game-changing platform that dramatically increases the effectiveness of front-line managers in healthcare,” said Russ Richmond, MD, CEO of Laudio. “Much more important than their capital, they each bring a unique and valuable perspective to our team. We are thrilled to be working with them.”
Laudio is a SaaS software company providing Intelligent Human Engagement – a real-time personalized management platform for nurse leaders. With algorithms derived from the analysis of the largest healthcare human resource dataset of its kind, Laudio has uncovered the key cultural and behavioral drivers that result in clinician and staff engagement and satisfaction – one of the most challenging and pervasive problems in healthcare affecting both healthcare costs and patient outcomes. Laudio’s platform serves up proactive interventions for clinical managers to address risk factors in real time, personalized for each team member. Leading health systems using the Laudio platform have reduced turnover by more than 10%, equating to more than $1.3M annually to the average 500-bed hospital. Laudio also enables a culture of engaged clinicians and staff that directly improve patient satisfaction, quality, and safety. For more information visit www.laudio.com.
About .406 Ventures
.406 Ventures is a Boston-based early stage venture capital firm investing in healthcare and enterprise technology companies founded by visionary entrepreneurs. .406 Ventures was founded in 2006 and has over $1B under management across six funds. The firm leads, or co-leads, first institutional investment rounds in market-changing companies. .406 Ventures’ healthcare theses focus on systems, technologies, and services that improve clinical delivery, with investments in companies such as Abacus Insights, Iora Health, AbleTo, Axial Healthcare, Nomad Health, Redox and Welbe Health. Learn more at 406ventures.com and here.
About InHealth Ventures
InHealth Ventures (IHV) is a London-based early stage venture capital fund that invests across health IT and medtech at seed and series A. IHV’s mission is to contribute to bending the healthcare cost curve, improving patient outcomes, and enhancing the working lives of clinical and non-clinical staff. IHV is linked to InHealth Group, the largest private provider of preventative and diagnostic services in the UK and Ireland. Other recent investments include Clarify Health Solutions, Heydoc, Kheiron Medical Technologies, Nye Health and Transformative.