Austin's Elligo Health Research raises $20 million for growth

Austin-based Elligo Health Research, which helps accelerate the development of medical products, said Tuesday that it has raised $20 million in a funding round led by Piper Jaffray Merchant Banking.

The funding round, the company's largest to date, follows a $16 million round in March 2018 led by Hatteras Venture Partners.

The company's earlier investors, including Hatteras Venture Partners, also participated in the round announced Tuesday. Terms of the deal were not disclosed.

"We believe in Elligo’s mission to help all patients have the best access to clinical trials as a care option," Tom Schnettler, managing director at Piper Jaffray Merchant Banking and a new Elligo board member, said in a written statement. “With more than 62 active research sites, their model has proven itself as the ultimate solution for enhanced patient access and engagement, and that is something we are excited to support."

Founded in 2016 by John Potthoff and Chad Moore, Elligo offers research infrastructure to clinical experts in an effort to improve patients' access to clinical trials. 

The company has 30 employees in Austin and more than 90 nationwide, according to CEO John Potthoff.

"The goal is to drive clinical trial efficiency through innovation,” Potthoff said in a written statement. "Our investors’ continued support in our unique Goes Direct approach and novel IntElligo Research Stack clinical technology has allowed us to quickly expand the base of physicians and their patients who otherwise would not participate in clinical trials."

According to Potthoff, the funding will go toward expanding into additional states, investing in data science services and further development of the company's Intelligo Research Stack. Elligo's IntElligo Research Stack technology platform uses health care data to direct clinical trials and prepare it for regulatory compliance.

The new funding for Elligo continues a strong start to the year for Austin’s venture capital sector.

In the first three months, Austin-are companies raised about $704 million, a $99 million -- or 16.3 percent -- increase from the same period last year, according to research firm PricewaterhouseCoopers, which tracks venture capital activity in the United States.

In addition to Elligo, at least 11 other locally headquartered companies have raised $20 million or more in deals this year. Some of the larger deals include software firm Magnitude’s $179 million private equity round in March, Siete Family Foods’ $90 million round in February and energy industry marketplace RigUp’s $60 million deal in January.