Certify secures $1.6M to transmit health care data

Certify Data Systems, maker of software used to safely transmit health information online, has raised $1.6 million in second-round funding and is already casting an eye toward a third round, reports VentureWire. Ziegler HealthVest Partners led the recent investment, which Certify will use to build its brand among hospitals and physicians.

Based in San Jose, Calif., the company currently serves four hospitals located in Florida, Illinois, Texas and the Pacific Northwest, making it possible for them to aggregate information about patients sent from doctors in a variety of formats, including XML, electronic faxes and PDF files.

Certify stands to benefit from the Obama administration’s emphasis on digitizing medical records. Some of the federal stimulus funds have been earmarked for companies advancing this mission, though it hasn’t been determined whether Certify will benefit. Still, that potential has hooked future investors, which have already been inquiring about a third round of financing.

Certify previously brought in a $5 million first round of funding and a $2 million bridge round from Ziegler, its law firm, Cooley Godward Kronish, and several individual investors.

Next Story: Gov't still looking to tighten rules on venture capital
Previous Story: Take-Two's Strauss Zelnick talks about games beyond Grand Theft Auto