Silverlink In the News

The medical communications technology developer has raised $7.6 million over two rounds.

Medical communications technology developer Silverlink Communications Inc. secured a new investor to lead its $5.6 million second round of venture financing, HLM Venture Partners, in an up round that also included the startup's first-round investor, Sigma Partners.

Three-year-old Silverlink's management team joined the two Boston-based VC firms in the round. Chief executive Stan Nowak said the Burlington, Mass.-based startup seriously targeted about eight firms, all in greater Boston.

He said the climate for venture investment was much more open compared with last year, when the startup raised $2 million in funding from Sigma. The company, he added, secured roughly what it sought for its second round under favorable terms. Although he would not give a valuation for Silverlink, Nowak confirmed that the new funding was an up round.

The startup sought legal advice from Morse, Barnes-Brown & Pendleton PC of Waltham, Mass., and used no financial advisers.

Silverlink introduced an automated telephone software product that enables healthcare companies to communicate with patients, collect data and provide personalized services. The product is useful for meeting regulatory compliance standards, particularly those introduced by the Health Insurance Portability and Accountability Act of 1996, or HIPAA.

Silverlink delivers its product through the software-as-a-service model, now used by such companies as Salesforce.com Inc. of San Francisco, in which the software is not shipped to customers but provided as an online service. The company's target customers are managed-care organizations, pharmacy benefit management companies, specialty pharmacies and pharmaceutical manufacturers.

Nowak said Silverlink began providing its software service two years ago and has processed several million calls since. The company, he added, has already doubled its client list this year from 2003.

Silverlink expects to use the funds for sales, marketing and development and to fund existing operating losses. Nowak said the company has no massive special projects in the pipeline and instead will use the funding for continued organic growth.

He said acquisitions are possible in the long term, but not for now.

Silverlink, who Nowak said has clients and sales offices throughout the U.S., anticipates gaining more regional customers but now deals with all of its national customers from its Boston-area headquarters.

Nowak said Silverlink's emphasis onHIPAA compliance sets it apart from other companies. It has a chief medical officer as well, he added.

Although he would not rule out another round, Nowak said the new funding will probably carry Silverlink through to positive cash flow by the end of 2005.

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