TPA Stream, a health insurance administration software firm, raises $1.4 million

TPA Stream, a health insurance administration software company in Cleveland, said it has closed a $1.4 million seed funding round led by the North Coast Angel Fund, one of its neighbors in the Global Center for Health Innovation.

The investment “will be used to strengthen sales and marketing efforts as TPA Stream moves into its next stage of growth,” the company said in a news release issued on Monday morning, Sept. 9.

Additional investors in the round are JumpStart Inc.Plug and PlayTamiami Angels and individual angel investors who were not identified, TPA Stream said. Specific terms of the investment were not disclosed.

The investment comes soon after TPA Stream was named to a list compiled by VentureOhio of the state’s “Top 50 Startups to Watch.”

“To close this new seed funding round and to be named to such a prestigious list are major milestones in the growth of TPA Stream,” said Jacob Sheridan, the company’s co-founder and CEO, in a statement. “We are grateful for the support of our investors in our technology and team.”

Todd Federman, managing director of the North Coast Angel Fund, said in the release that TPA Stream “delivers a great balance of industry expertise and startup know-how in addressing a critical challenge for today’s health care administrators.” John Opdycke, venture partner at JumpStart, added that TPA Stream “has the opportunity to become a significant market leader in the health care business management space and we are pleased to be supporting their efforts.”ADVERTISING

A company spokesperson said in an email that TPA Stream has a total of about 50 employees and contractors.

The company says it uses proprietary technology to “streamline health care administration activities, helping to bridge the gap between disparate data sources and reduce both time and cost for third-party administrators (TPAs), health plans, financial institutions and payroll vendors. The company’s explanation of benefits (EOB) harvesting, billing and integration apps work together to simplify data collection, billing, reimbursement, reporting and other administrative tasks associated with benefits processing.”

TPA Stream says its technology is being used at present by 75 companies nationwide.

In January 2018, TPA Stream announced that it had raised $800,000 in seed financing to support commercialization of its technology.

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