ProviderActive

A SaaS solution for healthcare payors that transforms managed care.

Analytics

Raised to Date: Raised: $0

Aggregate Commitments $
Platform

Fundme

Start Date

01/25/2021

Close Date

03/22/2021

Min. Goal

$50,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

SAFE

Funding Type

RegCF

Series

Pre-Seed

Rolling Commitments $
Status
Not Funded
Reporting Date

03/24/2021

Days Remaining
Not Funded
% of Min. Goal

0%

% of Max. Goal

0%

Likelihood of Max
Not Funded
Avg. Daily Raise

$0

Momentum
Not Funded
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Location

Canoga Park, California

Industry

Healthcare & Pharmaceuticals

Tech Sector

HealthTech

Distribution Model

B2B

Margin

Medium

Capital Intensity

Low

Business Type

Growth

ProviderActive, a SaaS solution for healthcare payors, is raising funds on FundMe. The platform connects medical and health insurance services and transforms managed care into a dynamic business. ProviderActive converts the healthcare data into comprehensive and contextual data and helps in taking meaningful action. Markus Toffe founded ProviderActive in 2018. The current round of crowdfunding has a minimum target of $50,000 and a maximum target of $1,070,000, and the funds will be used to continue the development of its PaaS and SaaS platforms, increase sales and marketing efforts, and fund general working capital. ProviderActive works towards eliminating wait time for approval, denied claims, surprise healthcare bills, and confusing healthcare coverage.
Summary Profit and Loss Statement
Most Recent Year Prior Year

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-26,596

$0

Summary Balance Sheet
Most Recent Year Prior Year

Cash

$0

$0

Accounts Receivable

$0

$0

Total Assets

$32,500

$0

Short-Term Debt

$0

$0

Long-Term Debt

$26,596

$0

Total Liabilities

$26,596

$0

Financials as of: 01/25/2021
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Analyst Report

Synopsis

The healthcare industry is notoriously antiquated. It relies heavily on paperwork and outdated computer systems that do a poor job helping healthcare workers save lives. ProviderActive is a healthcare software provider that hopes to bridge multiple systems of data into one streamlined hub for insurance companies to communicate with healthcare providers — or at least that’s what we understand the company to be doing. ProviderActive’s raise page is very unclear, and relies more on healthcare industry jargon than straightforward explanations of what the company plans to do. 

ProviderActive’s current FundMe raise has been rated an Underweight Deal by the KingsCrowd investment team.

Price

ProviderActive’s FundMe page does not provide a valuation, which is an automatic red flag for investors evaluating this deal. For what it’s worth, ProviderActive’s valuation ought to be extremely low. It’s not yet clear that the company’s founders know how they’ll solve the problem they’re focusing on, and accordingly, ProviderActive is pre-revenue. 

Market

The healthcare industry undoubtedly represents a massive opportunity for innovation. The entire healthcare services market is expected to reach $9.7 trillion by 2023 with a 7% CAGR. Healthcare spending is higher in the U.S. than anywhere else in the developed world. As a related market category, the U.S. healthcare IT market is projected to grow to almost $150 billion by 2025, at a strong 11.7% CAGR. ProviderActive has identified the pressing issues causing this market to expand: poorly integrated solutions between healthcare stakeholders, ballooning government spend on inefficient health services, and more. 

However, it’s very difficult to assess ProviderActive’s addressable market because it’s unclear what the company actually does. A well-designed solution to integrate unwieldy databases and softwares certainly has the potential to capture a share of this lucrative market — but it’s too soon to tell whether ProviderActive can be that player.

Team

While ProviderActive’s solution is dubious, the company’s team is relatively well-experienced in healthcare. CEO Markus Toffe has worked in healthcare for over 20 years, having held various roles in project management and business analysis at Anthem Blue Cross. He has also served as a consultant for at least one other healthcare organization, “providing insight and guidance regarding the interchange between healthcare service providers and payors [sic].”

ProviderActive President and COO Kristen Montez is a health law attorney with a focus on surrogacy law (representing egg donors and intended parents). She received her J.D. almost 15 years ago and has led her own firms since 2013. It should be noted that Montez does not list ProviderActive (or the company’s umbrella entity Atomic08) on her LinkedIn profile. 

Toffe and Montez have many years of experience in healthcare or healthcare-adjacent fields. However, neither of them has a technical background or prior experience with entrepreneurship. It is difficult to say whether they are prepared to develop what they ambitiously describe as a software platform to connect the entire healthcare industry. 

Differentiators

It’s impossible to assess ProviderActive’s level of differentiation from competitors in the healthcare SaaS space, because the company gives very little tangible detail about what its product will do. It’s worth noting, though, that ProviderActive is far from the first company to tackle the antiquated infrastructure supporting the connection between insurance providers and healthcare entities. Many companies have combined to raise billions of dollars in venture funding to “fix” healthcare. When ProviderActive ultimately settles on a product direction, it will have to navigate intense competition among many players in this space.

Performance

ProviderActive is pre-revenue, and more than that, pre-product and potentially even pre-product-idea. Therefore, there are no performance metrics to assess.

Bearish Outlook

ProviderActive provides a good deal of text on its raise page, and even a full business plan with pages of content. However, despite all of this material, it’s very hard to determine what the company actually intends to do. The problem that ProviderActive has identified is a clear and pervasive one, but ProviderActive has not proposed a clear solution to solve it beyond jargon-rich platitudes about how a hypothetical SaaS platform could be the cure-all. It’s also suspicious that ProviderActive’s materials frequently mention artificial intelligence (AI) without clear explanation — an all-too-common tactic of tech companies who use the buzzword to build interest despite not having any rigorous artificial intelligence algorithms backing their products.  

At this point, ProviderActive simply doesn’t seem to exist, so the company’s situation would have to evolve dramatically to present an attractive opportunity for investors.

Bullish Outlook

There’s a chance that ProviderActive’s team, with their meaningful experience in the healthcare industry, does have a winning idea for a healthcare SaaS company and will be able to scale that idea into an impactful, revenue-generating company. At this point, though, it’s just too early to say. 

Executive Summary

The ProviderActive team recognizes an issue with healthcare’s antiquated software and data infrastructure. However, they don’t seem to have developed a robust solution to solve that issue yet. We cannot recommend that investors contribute funds to a company with no clear product plan, particularly when the company’s valuation is not listed. Therefore, ProviderActive has been rated an Underweight Deal. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

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