OP prescription software firm lands $2.7M
September 22, 2015 | Ashley Jost
An Overland Park software company recently wrapped up a hefty funding round, according to its founder and CEO.
Rx Savings Solutions, a business that works with other companies to manage employees’ monthly medications, secured $2.7 million in funding. Kansas City investors Dan Henry, CEO of NetSpend Corp., and Jeffrey Brown, chairman at StoreFinancial, led the investment.
The funding will go toward product and business development for the company, which grew from two employees to 27 in the last 18 months. The company’s top clients include the State of Kansas and Berkshire Hathaway Company’s media group. Company leaders hope to grow by one million users during the next 12 months.
“As the intersection between healthcare and consumerism collides, health plan models are being challenged to produce innovative approaches that save money and provide better care,” Rx Savings Solutions CEO Michael Rea said in a release. Rea is a former pharmacist.
Founded in 2008, RX Savings Solutions created a patented software platform that helps employers pay the lowest market rate possible for prescriptions. On average, employers are overspending by 22 percent, according to RX Savings Solutions.
The company’s investors said that Rx Savings Solutions has a potential to disrupt its industry.
“Launching a business entails solving a problem that can impact consumers at every level, and Michael and his team at Rx Savings Solutions have developed a solution that corrects the consumer prescription drug experience,” Henry said in a release. “The industry is ripe for change and Rx Savings Solutions has positioned itself as a leader in this shift through its vision, positioning and overall strategy. With this investment, I look forward to helping them grow and develop both from a business standpoint and within the market.”
2015 Startups to Watch
stats here
Related Posts on Startland News
90 on the Clock with Mighty Handle
90 on the Clock with Mighty Handle By John McGrath, KCPT, and Bobby Burch, Startland News Ed’s Note: Flatland and Startland News have partnered to highlight Kansas City’s innovators and entrepreneurs, all in 90 seconds. This is the fifth and final episode in the series. Think of Mighty Handle as your digital defender. No, Mighty Handle is not anti-virus…
Gooding: Create your own market — don’t compete in someone else’s
“It’s a $100 million dollar industry, all I have to do is capture 1 percent of that market and I’ll make a million dollars.” After working with hundreds of startups, I have heard this statement countless times. This way of thinking is held by many business owners regardless of their industry, background or target market.…
From Mizzou to Spike TV, Tommy Saunders’ ab rollers hit national stage
Tommy Saunders is serious about fitness — one glance at his eight-pack and pythons for arms makes that clear. But the Kansas City entrepreneur is also serious about business, a fact he plans to prove as part of a reality-competition series debuting Tuesday on Spike TV. A former University of Missouri football standout, Saunders recently…
Blooom co-founder dissects $4M raise
Financial tech firm Blooom recently snagged one of the Kansas City area’s largest funding rounds in months. QED Investors from Alexandria, Va., led Blooom’s $4 million Series A round, which also included investments from DST Systems Inc., Commerce Ventures, Hyde Park Venture Partners and UMB. The Leawood-based firm plans to use the funds to hire new sales…