Blockchain startup Avaneer Health scored $50 million in seed funding from large healthcare industry players.

Its first network participants include insurers Aetna, Anthem and Health Care Service Corporation, providers Cleveland Clinic and Sentara Healthcare, and the PNC Financial Services Group.

WHAT IT DOES

Founded in 2020, Avaneer offers a network using blockchain and FHIR technologies to allow for secure data exchange between healthcare organizations.

That includes tools that help payers exchange information with one another, determine eligibility and conduct prior authorization.

WHAT IT'S FOR

The company will use the capital to invest in its workforce and technology and technology for the launch of its nationwide network.

"Addressing administrative costs and creating a positive consumer experience requires connectivity and the type of data fluidity we have come to expect in other industries," Stuart Hanson, CEO of Avaneer Health, said in a statement.

"We are very excited to jump-start our network to enable healthcare organizations to work together with a foundation of trust to solve the 'last mile' problem in healthcare. This group of well-known industry backers gives Avaneer Health the initial capital, scale and knowledge base from launch, and positions us for additional growth and industry venture investments in 2022."

MARKET SNAPSHOT

Interoperability and data sharing are perennial problems in healthcare. Other companies that tout improved data exchange within the healthcare and life sciences industries include Singapore-based Smarter Health, which recently scooped up $5.15 million SGD, and Datavant, which raised a $40 million Series B in October 2020.

In August, Microsoft Cloud for Healthcare announced it was expanding its API services for healthcare. Its Azure Healthcare APIs lets users to input health data and map it with FHIR, allowing it to be more easily searched and shared.

Other companies in the blockchain space include Signify Health with its acquisition of PatientBlox in November 2020, Embleema and Change Healthcare.