K4Connect, a Raleigh, North Carolina-based tech firm serving over 13,000 senior living residents across the country on its K4Community platform, announced it raised $12 million in Series B funding. The funding will allow K4Connect to continue an aggressive growth pattern, CEO and co-founder Scott Moody told Senior Housing News.
“We are not interested in steady growth,” Moody said.
In a crowded field of tech startups vying for traction in senior living, K4Connect has distinguished itself by landing large clients and scaling up from pilot projects to full rollouts. For example, K4Connect began working with Carlsbad, California-based Kisco Senior Living in 2015, and now the product is being rolled out across all 22 Kisco locations nationwide.
The latest funding round was led by AXA Venture Partners, a venture capital subsidiary of French multinational insurance firm AXA. AXA specializes in providing seed and equity funding to digital health, fintech/insurtech, enterprise software and consumer tech startups. AXA did its research on K4Connect just as the company began seeking investors for its latest funding round, and reached out to Moody about investing.
A returning investor, RGAx, also has insurance ties. RGAx is the tech subsidiary of Reinsurance Group of America.
“Health and wellness are important to insurance providers,” Moody said.
K4Connect’s success in the past year was another factor in landing AXA for the Series B round. Its inaugural product, K4Community, integrates the latest in smart wellness, smart home and smart living technologies into a single platform. K4Connect entered into a partnership with GPS manufacturer Garmin to integrate K4Connect into wearable GPS devices. Dude Solutions, a cloud-based operations management platform, also partnered with K4Connect to integrate K4Community into Dude Solutions’ TheWorxHub operations management platform.
K4Connect tripled its revenues and expanded its team by 40% in the past year, and Moody attributes the success to its ability to integrate scores of software and device advancements.
“Tech has had a challenge gaining a beachhead in senior living,” Moody said. “AXA saw us as an integrator of all these other products that launched over the years, solving a last-mile problem.”
AXA was the only new investor in K4Connect’s latest funding round. Returning investors include Stonehenge Growth Equity, Revolution Ventures’ Rise of the Rest Fund, Traverse Venture Partners, and Better Ventures.
“There was no new room for other new investors,” Moody said.
Written by Chuck Sudo