Medsphere Systems Corp., an Aliso Viejo medical software company, has raised $7.5 million in a second round of venture funding.
Azure Capital Partners of San Francisco led the round and joined prior investors Thomas Weisel Venture Partners of Palo Alto and Wasatch Venture Fund of Salt Lake City.
Medsphere also named Larry Augustin, previously an Azure venture partner, as chief executive.
Augustin succeeds Steve Shreeve, a Medsphere cofounder who becomes its chief technical officer.
Shreeve and brother Scott started Medsphere in 2001. Scott Shreeve is Medsphere’s chief medical officer.
Medsphere offers software used to manage clinical, financial and administrative data for hospitals, clinics and doctors. It is based on an “open source” program dubbed VistA and developed by the Department of Veterans Affairs. Medsphere’s version is called OpenVista.
Medsphere plans to use the funding to expand market. The company said that it has four facilities that are fully deployed and operational, with an additional six facilities under contract and in various stages of deployment.
Azure sees “significant opportunity for Medsphere to successfully enter the provider market” with its open source software, said Michael Kwatinetz, an Azure general partner who is going to join Medsphere’s board.
