Awarepoint snags $14M to expand wireless tracking in hospitals

Awarepoint, a maker of radio-frequency tracking devices for hospitals, has pulled in another $14 million in financing, piggybacking on the $27 million it raised last year, Xconomy reports.

The San Diego-based company's round was led by a $7.5 million investment from the Heritage Healthcare Innovation Fund, a venture group backed by hospitals and providers around the country. Awarepoint plans to use the money to expand its aware360° line of real-time location systems, which are wireless, cloud-based tracking devices that can be used to keep tabs on patients, assets and sample temperatures.

The company says its devices can help hospitals and providers cut costs, boost efficiency and improve top-line revenues, and that the large investment from Heritage affirms that. "Our selection as the Heritage Fund's initial investment and the continued support of our current world-class investor group is a tremendous vote of confidence," Awarepoint CEO Jay Deady said in a statement.

The new funding follows a successful 2011 for Awarepoint, which expanded its reach to nearly 300,000 tracking devices sold to 186 hospitals, according to the company. And the company's investors believe that's just the beginning. "The (real-time location systems) market is growing rapidly, and Awarepoint's leadership position, unique technology and integrated solutions set it apart," Paul Wallace, managing director of Heritage Group, said in a statement. "We and our limited partners look forward to helping the company realize continued success."

The latest investment round also included Kleiner Perkins Caufield & Byers, Cardinal Partners, Venrock, Jafco Ventures, Avalon Ventures, New Leaf Venture Partners and Top Tier Capital Partners.

- here's Awarepoint's release
- read Xconomy's take