Airtree sells down and reinvests in HotDoc via new fund
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More news: Airtree is participating via its Opportunity Fund V, its fourth consecutive round in HotDoc, having originally backed the company through its Series A in 2015 and Series B in 2018 — effectively selling down its position in older fund vehicles and reinvesting through a new one.
Potentia’s deal was led internally by Lachlan Kennedy, an investment director and board member at EstimateOne, Linkly and Jinjer, and partner Amit Chand, who sits on the boards of Storypark, Rex and Soprano. Both will join the HotDoc board, as will Airtree’s Kell Reilly, a partner with a decade of US growth equity experience. Geoff Sayer will chair the board.
The deal marks Potentia’s first healthcare software investment — the firm has previously backed companies across mining, education, superannuation and HR.
Andrew Gray, CEO and founder of Potentia Capital, said: "We couldn't be more excited about acquiring this asset, in this sector, at this time. We've looked at a lot of healthcare software assets in the past, but none has come close to the opportunity HotDoc presents."
Hurst will stay on at HotDoc saying "there’s significant work still to do. With this backing, we can continue to invest in the platform, grow responsibly, and deliver greater value across the healthcare system.”
Financial details of the investment have not been disclosed.
HotDoc completes Potentia-led investment
The news: Healthcare technology company HotDoc has completed an investment led by Potentia Capital, which has taken a majority stake in the business. Existing investor Airtree Ventures and new co-investor Acclivis, led by Geoffrey Sayer, also participated in the round.
The numbers: HotDoc founder and chief executive officer Ben Hurst announced the deal on LinkedIn, more than a year after the company first hired advisory boutique Allier Capital to run a sale process.
The platform has more than 13 million Australian users making 25 million appointments annually across a network of 23,000 GPs. It generates approximately $30 million in annual recurring revenue at a 25% EBITDA margin and claims 70% market share.
The context: Hurst founded HotDoc in 2012 with the aim of replacing the phone call booking system at GP clinics.
The company received its first investment from Hurst’s parents, followed by its first major institutional round led by Daniel Petre from Airtree Ventures.
Airtree has now participated in its fourth consecutive round in the business. From the outset of the investment process, Potentia showed a connection to HotDoc’s mission and company values, according to Hurst.
In December, the AFR reported Potentia had bought HotDoc for between between $250 million and $300 million.
What they said: “From the outset of our process, the Potentia team showed a deep connection to our mission and company values. Together, we will do our darndest to help GP practices and practitioners to deliver the best possible experience for everyone in Australia,” Hurst said.
The source: LinkedIn announcement
