LeverageRx announced this morning the close of a $535,000 raise from strategic investors.
Since launching in 2016, LeverageRx has helped over 10,000 healthcare professionals compare rates from its network of 45 lending and insurance partners.
“Two years ago we started building software to make it simple for doctors to compare rates for disability insurance and other niche financial products,” said Colin Nabity, CEO of LeverageRx. “As a licensed digital broker, our company has leveraged software to simplify the comparison and application process for non-traditional products, and the response has been tremendous. This capital round will help us iterate on our software faster, add great talent to our team and allow us to launch new products to our customers quicker, including malpractice insurance.”
Nebraska-based investors Nelnet, Invest Nebraska, and John Nelson, President of Silverstone Insurance Group, were contributors in the seed round. John Nelson will join LeverageRx’s board of directors.
“LeverageRx is a great example of what a Nebraska startup can do with the right kind of assistance,” said Dan Hoffman, CEO of Invest Nebraska. “The company has made significant strides from the 2016 NMotion Accelerator to actively participating in the Startup Collaborative and being selected into the Pipeline Fellowship. The company now has a great technology platform that serves a targeted niche market with fantastic upside potential and enhanced product opportunities.”
Chicago-based M25 Group was also a welcome addition to the other strategic and diverse contributors.
“LeverageRx has come a long way with very little capital, demonstrating compelling unit economics and a deep understanding of their customer,” said Victor Gutwein, Managing Director of M25 Group. “LeverageRx’s growth is fascinating and we think it’s in a great market.”
M25 previously invested in athlete marketing platform opendorse, based out of Lincoln. Gutwein said M25’s connections through opendorse and now LeverageRx, as well as coinvestors like Invest Nebraska, are creating stronger ties between Nebraska and Chicago.
“It was easier for me to do my second investment in Nebraska than my first because I already knew some of the organizations, and it might be even easier for me to do my third,” said Gutwein. “Once you get involved, that channel opens. I hope that more of that will be happening.
The benefit goes both ways. Colin Nabity, CEO of LeverageRx, said that his company also benefits from building a connection to Chicago investors.
“Sourcing capital from outside Nebraska is helping expand our network, visibility and strategic relationships,” said Nabity. “M25 already has an impressive network and portfolio of companies across the midwest. Having Victor on our cap table is already proving to be invaluable.”
Ben Williamson, Investment Associate and General Counsel from Invest Nebraska said his team is excited to be investing in LeverageRx alongside M25 and believes Nebraska and its startup ecosystems will benefit from it.
“Investments from experienced firms or groups around the Midwest, in this case, Chicago, certainly make the Nebraska startup ecosystem stronger,” said Williamson. “This is the second deal that both Invest Nebraska and M25 have participated in and we look forward to many more in the future.”
Gutwein believes the Omaha-Lincoln startup scene has strong support from government and nonprofit entities which make the area attractive to outside investors. He added that getting to know the people and ecosystem M25 is investing in is just as important as knowing the businesses.
That’s also something that attracted LeverageRx to M25, as well as their Nebraska investors.
“We are incredibly excited about our new capital partners,” said Nabity. “It was important for us to align with high-character investors who could bring both capital and strategic value. This investor group fills both of those needs.”
LeverageRx is hiring for several positions. For more information, visit the LeverageRx website.
Christine Burright McGuigan is the Managing Editor of Silicon Prairie News.