Canal Partners, an early-stage venture capital firm based in Scottsdale, Ariz., has sold its interest in WebPT to the Silicon Valley-based venture capital firm Battery Ventures. The sale yielded a return of 16 times Canal Partners’ initial investment, representing one of the firm’s most successful and lucrative exits to date.
An early investor in WebPT, Canal Partners helped the cloud-based electronic medical record (EMR) company achieve scale, garner significant market share, and evolve from a documentation system for physical, occupational and speech therapists to a complete software solution for the outpatient rehab therapy businesses. With the help of the initial $1-million investment from Canal Partners in December of 2010, the software-as-a-service (SaaS) company became one of the fastest-growing software companies in Arizona and one of the fastest-growing EMR software companies in the country within two years.
“When we discovered WebPT, we were blown away by what co-founders Heidi and Brad Jannenga had built,” said Todd Belfer, managing partner at Canal Partners. “We recognized their ability to scale very quickly and become a strong market leader in their industry. They proved us right and have been one of our best portfolio success stories. WebPT has matured well beyond our early stage investment, and as they move into their next chapter of growth, they’re in great hands with Battery Ventures.”
“We’re proud of what WebPT has done for the rehab therapy community as well as Arizona’s tech scene,” said Jim Armstrong, managing partner at Canal Partners. “They’ve created an amazing culture and truly are the hallmark of what every investor looks for in a portfolio company.”
Beyond providing investment, Canal Partners became a true partner in WebPT, providing counsel on business strategy, operations and growth. Jim Armstrong also took a seat on WebPT’s board of directors at the time of the initial investment.
“We did not take the decision to bring in outside investment lightly,” said Heidi Jannenga, co-founder and president of WebPT. “We did our due diligence in finding a true partner that would align with our culture and believe wholeheartedly in our vision, and Canal Partners fit that bill. It turned out to be a great decision and partnership, and was so imperative to our early growth.”
Canal Partners invests in a wide variety of B2B technology and SaaS companies and prides itself on providing support and guidance to help its portfolio companies reach maximum growth. Beyond providing capital, they take active strategic, advisory and board roles in the companies in which they invest.
About WebPT, Inc.
With a 30-percent market share, WebPT is the leading rehab therapy platform for enhancing patient care and fueling business growth. From scheduling, documentation and billing to outcomes tracking, business reporting and software integration, WebPT is the ideal solution for outpatient therapy organizations of all sizes. With a 99-percent retention rate and a 99.99-percent uptime rate, WebPT is the most-trusted and most-reliable solution in the industry. Launched in 2008, the company is based in downtown Phoenix’s historic Warehouse District. Learn more at webpt.com.
About Canal Partners
Canal Partners is a venture capital firm that provides professional investor services and capital to B2B software and internet technology companies that have market-proven products and services. Canal Partners creates, and increases value for, highly scalable, revenue-generating, growth-oriented companies in a variety of internet and software-as-a-service businesses. With offices in Phoenix, Atlanta, and San Diego, Canal Partners works with select portfolio companies, actively participating in board, advisory, strategic, and support roles to increase scalability, financial stability, and shareholder value. Learn more at www.canalpartners.com.
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