We’re thrilled to congratulate CEO and Founder Jason Krantz and the entire Definitive Healthcare team on their initial public offering today, the latest milestone in a ten-year journey defined by tremendous innovation and growth.
It’s a remarkable experience to invest in a company at a young stage and witness its growth and evolution into a public company. At our first meeting with Jason seven years ago the tell-tale signs of a fast growing, bootstrapped business were everywhere. He and his 35 employees were bursting out of their modest office space, so much so that there were desks in the kitchen and he kept a hard copy backup of the company’s database in a safe next to his desk. Needless to say, the company has come a long way since then. When Spectrum Equity became its first institutional investor in 2015, Definitive Healthcare had less than $10 million in revenue. It has since grown organically to more than $150 million in revenue, has more than 600 employees, and is continuously recognized for its outstanding corporate culture.
Jason launched Definitive Healthcare in 2011 with a vision of taking highly complex and unstructured healthcare data and packaging it in an easy-to-use visual format to help companies better understand the healthcare ecosystem. As a prior successful healthcare entrepreneur, he recognized the growing difficulty for businesses to identify true decision makers and effectively navigate selling into the complex healthcare market. At the same time, the rapid digitization of information had generated vast amounts of raw data, sitting in disparate online and offline locations. Definitive Healthcare was the solution – a SaaS-based healthcare commercial intelligence platform that aggregates and analyzes data to provide a 360-degree view of the U.S. healthcare ecosystem.
Definitive Healthcare sits at the intersection of two key segments for Spectrum - Healthcare IT and Information Services. Our experience partnering with other companies in each segment gave us conviction in Definitive Healthcare’s unique leadership as a standalone, single source of healthcare commercial intelligence on the entire healthcare market. Definitive Healthcare had all the hallmarks of a great vertically focused information services company – a proprietary dataset with robust analytics, an intuitive and easy-to-use interface, a highly efficient go-to-market sales strategy, and an attractive subscription-based revenue model with inherent operating leverage. Like other successful product-led companies we’ve invested in at Spectrum, Definitive Healthcare’s focus on innovation has fueled significant use case expansion among its customers, creating a massive total addressable market. The company’s more than 2,600 customers include leaders across different industries, from life sciences and healthcare IT companies to commercial real estate firms and financial institutions.
The past decade has been remarkable for the company and a testament to the team’s focus and dedication. The management team has scaled the business profitably, developed world-class talent, completed strategic acquisitions to enhance their capabilities, and built a mission-driven corporate culture that gives back to their communities through DefinitiveCares. Through all of this – including growing out of three more office locations – Jason and his team have been the definition of outstanding partners. While today is an exciting milestone, we know Definitive Healthcare has only just scratched the surface of what they can achieve. We are honored to continue our partnership during this next stage as a public company!
For more information on the initial public offering, please read the company’s press release.