Nym Health raises $16.5 million round A led by Google’s investment arm

Israeli startup Nym Health announced $16.5 million in Series A funding, led by GV (formerly Google Ventures), with the participation of Bessemer Venture Partners, Dynamic Loop Capital, Lightspeed, Tiger Global, and angel investors including Zach Weinberg and Nat Turner from Flatiron Health. Nym had previously raised a $6 million seed round in June 2019. The company was founded in 2018 by Israeli entrepreneurs Amihai Neiderman, who serves as the CEO, and Adam Rimon, the CTO. Neiderman and Rimon met at the IDF's Unit 8200 in which they served in the cyber department.

Nym employs 34 people in total in Israel and the U.S. and is at the initial stage of sales. The funding is aimed at supporting the company's ability to accelerate sales and marketing activities in the U.S., while scaling product deployment and development.

"The company solves the problems U.S. healthcare providers have in receiving medical reimbursements from insurance companies," explained Neiderman. "The insurance companies are private companies that aim to profit and the same goes for the hospitals. There is currently a very disjointed connection between these two organizations."

On the one hand, insurance companies want to know exactly what they are paying for, but without receiving private medical information, which the hospitals are unwilling to share.

Insurance companies currently receive a list of codes for each treatment, with each code representing a certain cost. Nym accelerates the billing process by automatically assigning the most accurate medical codes required for medical reimbursement. Medical coding is traditionally a manual process, performed today by more than 250,000 medical coders. Coders manually review each patient chart and assign the applicable medical codes required for billing.

"The medical code billing process is the only way to be refunded in the U.S.," said Niederman. "There are people in the U.S. whose job it is to take the hospital's release form and turn it into a payment form. This is a process that results in many errors. We have developed a platform that makes the entire process autonomous. We have a waiting list of hospitals who want to purchase our product."

"The process of translating medical notes into billing codes is a cumbersome and manual process, and a top pain point for many health systems in the U.S.," said Ben Robbins, Venture Partner at GV. "Nym offers a highly efficient solution to this problem, and we believe the company is well-positioned to meet the needs of health systems."