Apervita was a healthcare collaboration software vendor that created a health analytics marketplace. Founded in 2012, it partnered with major health systems and developed innovative tools for digital quality measures and interoperability. Despite its early success, Apervita ceased operations in 2021 due to funding challenges.
What was Apervita?
Apervita's main product was a platform-as-a-service (PaaS) for healthcare, enabling stakeholders to connect, build, and share applications that lower costs and improve outcomes. Its unique value proposition lay in secure, collaborative tools that streamline quality measures and care pathways. Notably, Apervita raised $45.36 million and featured in expert collections on value-based care.
Reasons behind Apervita's Failure
Funding Challenges Apervita struggled to secure sufficient resources during its second round of funding. Despite its innovative solutions and partnerships with major health systems, the company ran out of financial runway. Blackford Middleton, Chief Informatics and Innovation Officer, noted, "We ran into challenges with our second round of funding and have simply run out of runway."
Market Conditions The broader economic environment and market dynamics played a significant role in Apervita's downfall. The company faced an unfavorable capital-raising environment, which made it difficult to attract the necessary investment to sustain operations. This was a common issue among many startups during that period.
Operational Mismanagement Despite its early successes, Apervita faced internal challenges that hindered its ability to adapt and grow. The acquisition of Carta Healthcare's AI-powered data abstraction technology in June 2021 was a strategic move, but it was not enough to overcome the operational hurdles and financial mismanagement that ultimately led to its closure.
Impact on Investors and Market
Apervita's failure had a significant impact on its investors and the market. The company, which had raised $45 million in funding, left investors like Pritzker Group Venture Capital and Optum Ventures facing substantial financial losses. This event also cast a shadow over the health analytics sector, making investors more cautious about future investments.
Lessons Learned from Apervita's Failure
Secure Adequate Funding: Ensure sufficient financial resources are available, especially during critical growth phases, to avoid running out of runway.
Adapt to Market Conditions: Stay agile and responsive to economic and market dynamics to attract necessary investments and sustain operations.
Effective Operational Management: Prioritize strong internal management practices to navigate operational challenges and avoid financial mismanagement.
Strategic Partnerships: Leverage partnerships effectively but recognize they are not a cure-all for underlying operational issues.
Investor Relations: Maintain transparent and proactive communication with investors to build trust and secure ongoing support.
Frequently Asked Questions about Apervita
What were some key milestones in Apervita's history?
Apervita partnered with major health systems, acquired Carta Healthcare's AI technology, and launched the VitalTM platform.
What were the notable features of Apervita's platform?
Features included AI-powered data abstraction, an EHR-agnostic marketplace, and tools for digital quality measure execution.
Why did Apervita fail?
Apervita failed due to challenges in securing sufficient resources during its second round of funding.
Looking Ahead
As startup founders reflect on Apervita's journey, it's crucial to consider how to avoid similar pitfalls. Sunset handles all the legal, tax, and operational burdens when winding down a startup, helping you avoid penalties, reduce liabilities, and move on swiftly.
