TrueVault gets $2.5M to help health app startups with HIPAA-compliance

By Jonah Comstock
07:11 am

Money TreeMountain View, California-based TrueVault has raised $2.5 million in seed funding according to TechCrunch, from a range of big name investors including FundersClub, Paul Buchheit, ScoreBig founder Joel Milne, and an LLC that includes Andreessen Horowitz, General Catalyst, Maverick, and Khosla Ventures, and Immunity Project founders Reid Rubsamen, Naveen Jain, and Ian Cinnamon.

The company, which recently graduated from the Y Combinator incubator, aims to support startups that work with patient health information. TrueVault offers HIPAA-compliant data storage and a HIPAA-compliant API, which allows health data to be both encrypted and searchable.

"TrueVault provides a simple REST API that can be used to store and retrieve any amount of data, at any time, from anywhere on the web," the company writes on its website. "It gives developers the freedom to create applications that require regulatory compliance without worrying about regulatory compliance."

TrueVault will sign a business associate agreement, which under the new HIPAA omnibus ruling puts them on the hook for any data breaches, with its customer. The company charges between $100 and $1,000 per month depending on how many API calls the company's software makes. According to TechCrunch, the company has about 300 customers.

While TrueVault focuses exclusively on healthcare data storage, Box, a high-profile general purpose data storage startup, has said healthcare is its fastest growing vertical. Last April, Box announced post-Omnibus HIPAA compliance and several health startup customers, including Doximity, drchrono, HealthTap, and TigerText. Since then, Box has added a number of provider customers including the MD Anderson Cancer Center, Johns Hopkins HealthCare Solutions and Mt. Sinai Health System.

Box brought on two high-profile healthcare advisors earlier this month -- former US Chief Technology Officer Aneesh Chopra and former Allscripts CEO Glen Tullman.


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