In the medical technology space, compliance is critical to success. Your business could have the most impressive solution on the market, but if you fail to meet HIPAA compliance, you’re dead in the water.
Luckily for healthcare innovators, MedStack was created to help businesses reach market faster than ever. Their platform delivers built-in privacy and security protocols in a developer-flexible cloud hosting environment with pre-written HIPAA privacy policy documentation, accelerating healthcare apps to market.
How much is MedStack doing in MRR?
MedStack is a pure-play SaaS company that charges its customers on a monthly subscription basis. On average, customers pay them $700 per month and scale up based on server usage.
The company has scaled to 45 total customers today and is doing $31k in MRR right now, according to CEO Balaji Gopalan. MedStack has grown 200% year over year and is up from $10k in MRR 12 months ago.
What is MedStack’s churn today?
Founded three years ago, MedStack has only churned 10% of their customers of the duration of operation. The company has been able to drive growth through their land and expand model with customers exhibiting 4-5x growth each year.
Customer acquisition cost (CAC) has been a huge focus for the company over the last year. Overall, they have been able to reduce CAC from $2,800 to below $2k in the last 12 months. MedStack is receiving payback within 3 months today and models lifetime value over 3 to 4 years.
How much has MedStack raised?
Overall, MedStack has raised $500k in total capital over three years. Gopalan noted that the company is currently in the middle of raising a $1.5M priced equity, seed round at a $6.5M pre-money valuation right now.
Their team of seven full-time employees is based in Ontario, Canada and is aiming to keep up their impressive growth after closing their next round of capital.
