Wellington-based software as a service startup Noted raised over $500,000 through a private crowdfunding campaign on PledgeMe over the weekend.
Scott Pearson, Noted founder and CEO, originally developed the concepts that underpin the cloud-based electronic medical record and health practice management software while looking for a better way to track the outcomes of his acupuncture patients.
“I shifted careers from broadcast design and 3D animation software development to acupuncture after selling an earlier startup, Character Animation Technologies to a Fortune 500 company in 2006,” Pearson says.
“I enjoyed my new career but was frustrated when I couldn’t take notes the way I wanted to with existing tools. In particular, practically capturing and reporting on outcome data was very limited. After some research, I realised the issues I’d identified extended right across the health sector, so I decided to develop a solution.”
Noted launched the first public version of its software solution in June 2017 to a small number of clinics, with users so far including acupuncturists, massage therapists and dietitians.
Content is also in development for psychologists, mental health nurses, physiotherapists, osteotherapists and others.
The private equity crowdfunding campaign launched on August 29, with a minimum goal of $100,000.
It hit its maximum goal of $500,000 in less than two weeks of launching the campaign.
The money raised will go towards developing and marketing the product, with a view to achieving a significant beachhead in clinics with less than 20 clinicians by mid-2018.
The entire Australasian market has over 785,000 potential users, with a potential of over $433 million per annum.
“Our biggest surprise so far has been the immediate interest from offshore,” Pearson says.
“We are currently building relationships with influential users and organisations in the USA, UK and Australia with progress far in advance of our original expectations.”
Other successful PledgeMe equity crowdfunding campaigns in the software industry include Websoft, which was recently valued at $30million.
PledgeMe CEO Anna Guenther says it was exciting to support Noted's private campaign.
“The team were really clear that they didn’t want to go over the 50 voting share parcel mark, so felt that a smaller private equity crowdfunding campaign would make sense for them,” Guenther says.
“It meant they could go a bit wider than their normal crowd and have a clear process for their interested investors.”
“We’re excited that they met their goal so quickly, and now have the funds they need to take their healthcare software to the world.”
Noted at a glance
- Founded in October 2015
- Proof of concept testing at the Newtown Acupuncture Centre began in October 2016
- Raised $330,000 through public equity crowdfunding in November 2016
- Raised $520,000 in less than two weeks in September 2017 through PledgeMe’s private equity crowdfunding