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The aim of the competition is to build a new generation of health software to replace old hospital systems, which in some cases cannot be updated for decades. A start -up company from Munich in Germany called Aries He has ambitions to build a new kind of administrative system between the endpoint, relying on moderate tools with AI and Cloud Services. On Thursday, he announced 30 million euros ($ 31 million) in series funding as it gets momentum.
Sequoia is leading the London office and investors of the Avelios Seed Turn also participate in high-tech, Gründderfonds, Revent and individual investors.
Departure does not publish the evaluation, but it comes on the Avelios corner of the turn and has grown impressively – with only EUR 5 million earlier funding. So far, Avelios claims to sign 12 customers, each on Germany’s home market, including one of the largest private hospital chains, Sana Kliniken AG; The Ludwig-Maximilians University Hospital in Munich and the Hannover School of Medicine.
“I think we are quite effective,” CEO Christian Albrecht told Techcrunch. “We have a really good engineering team and a team of 11 doctors.”
Albrecht-AKI founded the company with CTO Nicolas Jakob and Sebastian Krammer, saying in an interview that the plan was to use funding to promote system development and enter multiple markets. It is the subject of a debate with the Spanish hospital chain and says he is looking at France and the UK
Thoughtful beginnings
Avelios uses a thorough approach to the world of health systems, which is aimed at a market that has so far been largely built around concrete implementation, so it had to be specifically integrated to cooperate (and possibly it could have been. As a result, it never worked so well).
But since a health question starts a little before becoming a consumer, Avelios himself did not start to know the size and the effect of being built.
As Albrecht (in the picture above describes Jakob and Krammer in the above picture), Krammer worked as a doctor during the Covid-19 epidemic when he was bare for the German health system.
“He ran through the hospitals and counted almost full time, and then reported the results by hand,” Albrecht said. Krammer then consulted with Jakob, whom he knew earlier to build something to improve reports to get a better insight into emerging trends.
“Nico (Jakob) is a software engineer and quite expert in deep learning,” he continued. – And they tried. They conducted very promising AI research and tried to expand this research, but it was quickly discovered as many other people that they could not provide the data they needed for their AI system with obsolete systems of hospitals. work.”
Albrecht was Jakob’s old friend – a previous company was built together – so they were called to help them organize something usable. They quickly realized that to fix one thing to fix the other, and so on – again, not unlike the health issue.
“We were faced with a very important decision,” he recalled. “If we handle -ea” symptoms “and build a point solution on top of existing chaos, at the top of existing IT systems, or do we really handle the cause of this and build a completely new hospital information system?”
They made a big call, he said, and went to the latter: “Knowing it would be harder, knowing that it would take longer, but in full belief that you can solve most of these causes in this way; And then in the second step, after completing this detour, it is in a unique position to do all the imaginary AI stuff on top because it has structured data, you can integrate the AI solutions. ”
And so it took years, but Avelios finally built a system that does all administrative things: it includes EHR (electronic health records), billing, clinical records and people who work in different classes or institutions in order.
In addition to Covid-19 wake-up calls (which in Germany itself had a government funding momentum to update the systems), there were other major changes that helped Avelios land conversations, then transactions, then shops and healthcare providers.
The first of these was the change of direction, probably the biggest competitor in office. SAP, one of the largest service providers that dominates the market for health care (and other verticals), is on the way to cross the Cloud Services architecture of $ 30 billion in corporate resource planning (ERP). This meant that he had moved away from building and contributed to the support of long-term, point-specific solutions to certain verticals, including health care.
More than 1000 hospitals using SAP inherited systems must change service providers during the update. (SAP recommends Avelios as a temporary partner, and Albrecht said they were working to try to put them in a pole in the recommendation process.)
The second is the great momentum of AI. Like many other industries, Healthcare is not only directed to AI solutions; He also asks them. But they cannot move on to effective AI applications without using their data in a condition and useful – structured, interoperable – and old systems are generally not built. This becomes another charging to update.
The investor’s attention to pragmatic victories
Sequoia’s attention began with the introduction of one seed investor.
“Avelios was the system structure for four years,” said Anas Biad, a partner of Sequoia, who led the investment in an interview. He said he was completely surprised when he discovered that he would start to see how many clients he had taken, despite being so quiet. “We managed to win the largest private and state hospitals in Germany. We were really amazed and sprinted very quickly. ”
Although Avelios brings great and ambitious momentum here, he does so with a lot of pragmatism, the investor said. Hospitals will usually not reverse, and the wholesale of entire systems will be interrupted to update, not least because they have to continue to operate, but also because of costs.
Indeed this The Cyber Security Report from 2022 “From the company of health information and management systems,” he stated that about 73% of hospitals described their systems as a “heritage”. (Demolished 35% using Windows Server 2008; 34% using Windows 7; 25% LEGACY MEDICAL Tool Operating System; 21% Industrial Control Systems OS (21%); and (shockhorror) 20% still using Windows. ;
“Some health organizations do not necessarily plan to obsolete these operating systems,” writes HMSS. “Every tool has a useful life and it is important for organizations to plan the end of life.”
So Avelios’s approach was to keep things modular.
“We can get down with customers modestly,” Albrecht said. He explained that this could first mean that it can provide software to help with the administrative functions for documentation, then billing, then in the patient’s portal or other order. “This is something that existing Legacy players cannot offer because one monolithic system is replaced by another monolithic system and then only has the Big Bang option. And so many of these projects are so terribly bad. ”
