News & Views

 

Why Madrona Invested in Accolade
AUTHOR: Matt McIlwain

World-class teams, compelling problems to solve and sustainably differentiated solutions. These are ingredients for a promising venture investment. At Madrona, we usually focus on early-stage companies that are differentiated through information technology and based in the Pacific Northwest. We believe, now more than ever, our strategy will help build a next-generation of leading companies in the region.

So, why did Madrona participate for the first time in the Series E round of Accolade? Accolade is an on-demand healthcare concierge for employers, health plans, health systems and the people they serve. Founded nine years ago in Pennsylvania, the company attracted Raj Singh as CEO last year. Raj has already brought together a strong group of existing executives with some former Concur executives, including CTO Mike Hilton, to build the world-class Accolade leadership team based primarily in Seattle.

We believe, now more than ever, our strategy will help build a next-generation of leading companies in the region.

Raj Singh

Rajeev Singh, CEO Accolade

Raj and Mike co-founded Concur in 1993 before Madrona even existed and played leadership roles throughout, culminating in an $8.3 billion sale to SAP in 2014. Madrona has maintained a close working relationship with many members of the Concur executive team. Raj is on the board of Madrona-backed companies Apptio and Amperity. We have seen first-hand the value Raj and Mike provide entrepreneurs in operationally scaling companies. They are experts at applying innovative technologies to improve customer experiences in a cost-effective manner.

. . .  the Accolade team has the opportunity to be a very large player in the evolving healthcare landscape.

Healthcare is a massive market and Accolade has many opportunities to apply mobile and data-driven capabilities to their existing concierge solutions and scale their personalized service to more healthcare consumers. As the healthcare industry continues to evolve to an outcome-per-patient model with increased use of medical records and data, patients need guidance and advice more than ever. With technology enabled services, employers and their families can make better health care choices benefitting their own lives. Accolade has a distinct model for remaining people-centered while leveraging modern technologies and techniques.

We believe the Accolade team has the opportunity to be a very large player in the evolving healthcare landscape. By doing so, they can build another leading technology company here in Seattle. And, we have found that Madrona can add the most value when teams are based in region. The combination of a proven, Seattle-based team and a compelling business model convinced us that investing at a later stage in Accolade was the right fit.