Health regtech startup Zipline banks $10 million for US push

Health and aged care compliance reporting platform Zipline.io has raised $10 million  as it looks to ramp up US market growth

Existing backer EVP led the round with the VC’s largest follow-on cheque, supporting by King River capital. New backers include TechnologyOne founder Adrian Di Marco, Aconex cofounders Leigh Jasper and Rob Phillpot, the Sypkes Family Office and SecondQuarter Ventures, giving existing investors the chance to realise some of their gains since former Microsoft executive Michael Momsen launched the business in 2016.

Zipline began life as the emoji based customer feedback platform RateIt before its pivot into health regtech.

The company previously raised $6 million for Zipline in a Series A2 in November last year and has moved into the US nursing facilities market.

Momsen said they found many similarities between the US and Australian markets.

“In both markets frontline teams are drowning in compliance burdens. The industry really is looking for a better way, as the implications of getting it wrong really hurts. The industry absorbs millions of dollars in fines for non-compliance and ultimately results in consumers getting the worst outcomes,” he said.

“We hear over and over again that staff are stressed out and leaving due to the pressures of balancing delivering quality care and managing high administrative workloads – of which compliance is the major driver.”

Zipline recently launched a new offering called QuickStart, which uses AI to automatically collect all 15+ documents required to be compliant and verify they are legitimate.

Among the startup’s backers, Momsen said SecondQuarter Ventures was a “game-changer” for the Zipline team in cashing in on the company’s success.

“There’s only a few reasons why someone should join a startup. Do you want to go on an immense career and personal growth journey, have outsized customer impact, see what ‘great’ looks like so you can learn what it takes to run your own startup one day – and finally, have a shot at some financial upside,” he said

“Our partnership with SecondQuarter allows that last point to become a reality.”

SecondQuarter managing partner Ian Beatty said tech companies are looking to show employees with stock options that they can be quite valuable with a liquidity partner.

“Our investment in Zipline.io sets a strong foundation to help employees and early investors cash out some of the value they create along the way – and we’re looking forward to the journey,” he said.