Avelios Secures €30 Million in Funding to Revolutionize Healthcare Software

A New Generation of Healthcare Software

The healthcare industry is racing to upgrade its legacy hospital systems, which in some cases have not been updated in decades. A startup from Munich, Germany, called Avelios, aims to build a new kind of end-to-end administrative system, leveraging modern tooling, AI, and cloud services. Today, Avelios is announcing €30 million ($31 million) in funding as it gains momentum.

Series A Funding

Sequoia is leading the Series A funding out of its London office, with participation from investors from Avelios’s seed round, including Revent, High-Tech Gründerfonds, and individual investors. The startup is not disclosing its valuation, but the round comes on the heels of Avelios having grown impressively, all on just €5 million of prior funding.

Significant Customer Acquisition

Avelios has signed on 12 customers in its home market of Germany, including one of the largest private hospital chains, San Kliniken AG; the Hospital of the Ludwig-Maximilians-University in Munich, and the hospital of the Hannover Medical School. CEO Christian Albrecht attributes the impressive growth to the company’s efficient approach, which combines good engineering with cost-effectiveness.

The Legacy System Problem

A recent cybersecurity report from the Healthcare Information and Management Systems Society found that among the hospitals surveyed, 73% described their systems as "legacy." Broken down, this includes 35% using Windows Server 2008, 34% using Windows 7, 25% using a legacy medical device OS, 21% using an industrial control systems OS, and 20% still using Windows XP and 19% using Windows Server 2003 and 2003 R2. The report highlights that some healthcare organizations may not be planning for the obsolescence of these operating systems, emphasizing the importance of planning for their end-of-life.

Modular Approach

Avelios’s approach has been to keep things modular, allowing customers to land with software for specific administrative functions, such as documentation, billing, or patient portals, in a different order. This modular approach enables Avelios to offer a more flexible solution than existing legacy players, who often replace one monolithic system with another, resulting in failed projects.

CEO’s Perspective

"We can land modularly with customers," said Albrecht. "This means we can provide software for helping with administrative functions around keeping documentation, then billing, then patient portal, or in a different order. That’s something that existing legacy players can’t offer, because they would replace one monolithic system with another monolithic system, and then you only have the Big Bang option. And that’s why a lot of those projects go so horribly wrong."