OnShift, a staff scheduling and labor management software provider for the senior living industry, has big growth plans on the horizon for $7 million in financing that it recently secured.
The company announced Tuesday that it had closed $7 million in Series C Financing, which it will use not only to increase existing business operations, but also to expand office space at the company’s headquarters in Cleveland, according to OnShift CEO Mark Woodka.
“We a little more than doubled last year, so we’re going to invest in sales and marketing as well as product development,” Woodka said to SHN. “That’s mainly why we raised the money.”
Senior living providers have used OnShift’s software for staff scheduling, reducing paperwork and also managing compliance with provisions outlined in the Affordable Care Act.
The expansion will add about 20-25 new positions, Woodka added, as the company looks to accelerate its research and development plans and drive its presence in the senior living and healthcare markets through sales and marketing.
Adding more staff will also drive OnShift, which has expansion rights in its current building, to take up the rest of the two floors where the company currently operates.
HLM Venture Partners led the Series C Financing round, which included participation from the company’s institutional investors Draper Triangle Ventures, Early Stage Partners, Fifth Third Capital, Glengary LLC and West Capital Partners.
A new OnShift investor, HLM Venture Partners was an attractive investment partner for OnShift considering the firm’s experience and relationships with other senior living and long-term care providers, Woodka said.
“HLM Venture Partners enjoys deep industry relationships with both national chains and independent operators in senior care, and we’re excited to leverage those relationships to help OnShift penetrate the market even further,” stated Marty Felsenthal, a partner with HLM, in a release.
Information regarding those partnerships in the senior living and long-term care industries were not disclosed to SHN.
Medicare and Medicaid cuts and new health coverage requirements in the Affordable Care Act have been components contributing to the company’s growth, especially as providers have been forced to focus more on labor expenses.
In the past year, the company increased its customer base by rolling out its software software solutions to more than 1,000 sites.
“Healthcare reform and an aging population are changing the game for long-term care and senior living providers,” said Woodka. “Staffing and labor management have risen to the top of executive agendas. This investment will help us meet this demand by increasing product development and accelerating our growth.”
Written by Jason Oliva