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January 11, 2023 | Tom Ballard

Ballad Ventures joins latest funding round for healthcare risk management company

New funding brings total venture capital raised to more than $22 million.

Tri Cities-based Ballad Ventures is part of a funding round for Boston-based Censinet, the leading provider of healthcare risk management solutions.

Censinet announced $9 million in funding led by MemorialCare Innovation Fund which also includes Rex Health Ventures and Ballad Ventures. The latest infusion of capital brings the company’s total funding to more than $22 million. Existing investors LRVHealthHLM Venture PartnersSchooner CapitalExcelerate Health Ventures, and Cedars Sinai participated in the round as well.

“Censinet’s mission is to take the risk out of healthcare,” said Ed Gaudet, Chief Executive Officer and Founder at Censinet. “With the number of breaches escalating and ransomware now a direct threat to patient safety, the need for the healthcare industry to transform cyber risk management has never been more urgent. Censinet’s unique risk exchange enables providers, payers, and vendors to collaboratively manage third-party and enterprise risk, continuously improving risk posture in real-time and strengthening cybersecurity across all healthcare organizations.”

Purpose-built for healthcare, Censinet RiskOpsTM is the world’s first and only cloud-based, HIPAA-secure risk exchange that enables healthcare organizations to share and manage risk data to strengthen cybersecurity. With close to 40 customers across health systems, health plans, and vendors, and 100 percent annual recurring revenue growth year-over-year through Q3 2022, the company is undergoing record growth and has never lost a customer. This new funding round is earmarked for continued investment in sales and marketing, product development, and customer success to rapidly expand customer base; drive expansion through new product modules and capabilities; and expand the company’s core offering into adjacent markets and verticals.

“The company’s two-sided network approach for third-party risk assessment is invaluable – to our information technology teams and team members throughout the health system, to our third-party vendors and, most importantly, to the patients and community we serve,” said Pam Austin, Chief Information Officer for Ballad Health and Senior Information Technology Advisor for Ballad Ventures. “The collaboration, automation and risk mitigation made possible through Censinet are tremendous, and we’re excited to work with this platform going forward to bolster our internal efficiencies, lessen threats and, ultimately, create a safer, more conducive environment for our patients.”

Censinet’s flagship offering delivers total automation across all third party and enterprise risk management workflows, processes, and insights. With a Digital Risk CatalogTM of over 34,000 vendors and products, automated corrective action plans, real-time portfolio management, and Board-ready reporting with actionable insights, Censinet customers manage and mitigate third-party risk across the entire vendor and product lifecycle with assessment completion time of less than 10 days, the industry’s fastest solution.

The company recently announced a landmark initiative, The Healthcare Cybersecurity Benchmarking Study, co-sponsored by the American Hospital Association and KLAS Research, to establish and validate robust benchmarks across cybersecurity program KPIs as well as program coverage of NIST Cybersecurity Framework (NIST CSF) and HHS Health Industry Cybersecurity Practices (HICP).