Catalio Capital Management Co-Leads $27 Million Financing for Medical Informatics

Catalio Capital Management and Intel Capital have co-led a $17 million Series B equity round for Medical Informatics Corp., a 12-year-old Texas firm enabling virtual and remote care. The New York-based investing firm pumped in an additional $10 million debt via its structured equity program.

Tampa General Hospital’s venture fund, TGH Innoventures, and Austin, Texas-based Notley were new investors in the Series B round. nCourage, California’s DCVC and Dutch investing firm TMC were previous investors who joined this round. MIC has raised $38.9 million from investors so far.

Catalio principal Jonathan Blankfein, a former Goldman Sachs banker, will join the company’s board of directors subsequent to the funding round, while Dr. Diamantis Xylas, a U.K.- and U.S.-educated physician who heads Catalio’s research, will be a board observer.

“Health care systems’ need for high-caliber, cost-saving, data-driven technology is only going to increase, and MIC’s proprietary platform is perfectly positioned to address some of the most critical clinical challenges that health care organizations face,” said Blankfein.

MIC has developed an FDA-approved SaaS-based platform called Sickbay that aggregates medical data from bedside monitors to augment healthcare services, while also enabling remote monitoring.

“We have seen an increased demand for our solution as our clients face significant staffing challenges and are looking for ways to amplify and empower their workforce,” said CEO Emma Fauss, who along with Craig Rusin cofounded MIC. “Some of the largest healthcare systems in the country are standardizing their infrastructure on our Sickbay, platform while consolidating IT spend.”

Life Sciences Focus

Catalio was founded by George Petrocheilos, a Greek whizkid who was only 22 when he made Baltimore Business Journal’s “40 under 40,” and Dr. R. Jacob Vogelstein, a biomedical engineer from the Johns Hopkins School of Medicine. In its young history, the investing firm has built partnership with over 36 world-renowned scientists who have each started several successful companies. As many as 30 Nobel Prize winners “own a piece of Catalio,” according to a report in The Hellenic Initiative.

In October, Catalio closed a new $85 million fund, Catalio Credit Opportunities Fund I, and another, Catalio Nexus Fund III, in May worth $381 million. Catalio has so far raised $566 million from three funds. It has made 39 portfolio investments and exited five. Its recent investments include Odyssey Therapeutics, Fractyl Health and Cartography Biosciences. Catalio has offices in New York, Baltimore, and London.

Covid-19 Payoff

Emmas Faus, armed with a doctorate degree in electrical and computer engineering from the University of Virginia, and an M.B.A. from Rice University’s Jones Graduate School of Business, cofounded MIC in 2010. For good measure, she was briefly a fellow at Mercury Fund, a seed-stage investor. At MIC, she assembled a team of innovative engineers, mathematicians, clinicians and researchers, focusing on software-based health monitoring and data-driven care.

MIC’s Sickbay platform, approved by the FDA, aggregates unrecorded, high-resolution waveform data from disparate bedside devices. It also integrates with data from Electronic Medical Records and other systems, delivering an actionable dashboard for healthcare givers. In over two years of the Covid-19 pandemic, and its attendant focus on remote care, has raised MIC’s profile in the industry. It particularly helped hospitals in coping with staff shortages, besides enabling a higher standard of care.

“One of the main barriers to advanced analytics in health care is the siloing of data and today there is a significant need for a platform to enable flexible, centralized and remote monitoring at scale and on demand,” said Mark Rostick, vice president and senior managing director at Intel Capital. “Medical Informatics is setting a new standard of health care by removing these data silos for health care providers of all sizes and transforming the way patients are monitored from hospital to home with real-time AI.”


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