WebPT announces closing of Series A funding round

WebPT, a Web-based electronic medical records system (EMR) for physical therapists, today announces it has closed a Series A funding round totaling $1 million in private equity funding. The company has very quickly become the fastest-growing Web-based documentation software now used by more than 5,000 physical therapists in just three years. This infusion of capital was raised to help the company swiftly expand its team in the areas of product development, sales and marketing, and to build out infrastructure to support its growth. WebPT presented the round to experienced investors in Arizona. The deal was closed this week with Canal Partners, led by JDA Software founder and chairman Jim Armstrong, and successful entrepreneur and investor Todd Belfer. Mr. Armstrong will also sit on the board of directors for WebPT.

"We look at fast companies all day long and we don't believe most of them can truly scale. WebPT has proven that they can. We believe WebPT has done everything right and shows enormous potential to be the market leader in their segment very, very quickly," said Jim Armstrong, managing partner for Canal Partners.

WebPT was developed to make electronic medical records more affordable, totally mobile, and intuitive to physical therapists. The founders, Brad and Heidi Jannenga, have grown the company organically since its inception in 2008. With an award-winning product and growth of over 300 percent in 2010, they decided it was time to bring on a CEO with experience in scaling startups, and raise capital to take advantage of the market opportunity.

"The sheer demand for our product is far outpacing us now, so we knew it was time to add additional talent and capital to really step on the gas," said Brad Jannenga, CTO and co-founder of WebPT. "Bringing in Paul Winandy as CEO was the first step and he successfully helped us close this round. We are so excited to have the backing of a group as prestigious as Canal Partners, and someone with Jim's experience on our board."

In the next few months, WebPT will announce new features and key product integrations that will make its EMR system that much more attractive to physical therapy clinics that are struggling with paperwork and billing. Currently 80 percent of PTs still use paper documentation, or other manual processes that hinder productivity and profits. All medical practices are required to use EMR systems in some capacity by 2014, creating a large opportunity for WebPT.