JumpStart Ventures, which invests in and partners with innovative, early-stage companies in Northeast Ohio, recently closed two new investments. These investments, which are coupled with intensive entrepreneurial development assistance, bring the total number of investments made by JumpStart Ventures to 13 investments in the past 12 months.

A $250,000 investment commitment went to CoverMyMeds LLC, the newest JumpStart Ventures portfolio company. The Twinsburg, Ohio healthcare technology and services company has developed web and phone-based tools that expedite and automate the submission of Prior Authorization (PA) requests to patients’ health insurance plans. PA and other Coverage Determination forms are required after coverage of a patient’s prescription has been rejected by their health plan. Before CoverMyMeds, submitting a PA was a manual process, and universally frustrating and expensive for physician offices and pharmacies. Because of this, PAs often were not submitted, leading some patients to go without needed medication. CoverMyMeds’ tools cut the process to less than five minutes, a reduction of at least 70 percent. The company will use the fund and entrepreneurial development assistance from JumpStart Ventures to further develop its launched product and begin the process of integrating its system into the doctor, pharmacy, and insurer work streams.

“CoverMyMeds offers pharmacies and physicians a simple, easy-to-use solution to a complex problem,” said CoverMyMeds Co-Founder Sam Rajan, R.Ph. “Because of this, the value proposition to our clients is the ability to capture lost revenue at a very reasonable cost.” Rajan and Co-Founder Alan Scantland were previously on the senior management team at MemberHealth, a pharmacy benefits management company in Solon, where they led a management team that grew the company from $55 million to $1.3 billion. MemberHealth was acquired by Universal American Financial Corporation for $630 million.

JumpStart Ventures also invested an additional $100,000 in existing portfolio company, ECHOGEN Power Systems of Akron. ECHOGEN has developed a proprietary waste heat to power engine for use in power generation, industrial, and commercial market sectors. “ECHOGEN’s Waste Heat Recovery System Beta Test Program with an Ohio utility is on track and we expect continued positive results to support our commercialization initiatives,” said Michael Persichilli, VP of Business Development and Strategic Relationships. “The level of interest among energy-intensive industries, utilities, and strategic partners has been exciting.” This investment, which brings JumpStart Ventures’ total amount invested to $500,000, will be used to complete development of a second pilot engine that will improve upon cost position and performance compared to the first engine.

The 13 investments made by JumpStart Ventures include nine investments in new companies and four additional investments in existing portfolio companies and is a fiscal year record for the organization. Since inception, JumpStart Ventures has made 64 investments in 48 companies. For more information on Jumpstart Ventures, please view the interview with Ray Leach from Jumpstart in this week's publication under "Angels Just Wanna Have Fund" or visit (www.jumpstartinc.org/ventures)

Jumpstart Venture is a member of NASVF - Richard Miler, Editor