BranchLab, a data-science company that uses artificial intelligence to enable healthcare marketers to target appropriate consumers, said it launched its first product, backed by a seed round of funding led by newark venture partners.
The new company was started in February by CEO Josh Walsh, co-founder of AdTheorent; President and Chief Revenue Officer Michael Parkes, former president of VideoAmp and Chief Technology Officer Chris Cagle, former executive VP, technology, AdTheorent
Venture capital firm Aperiam also was part of the seed round of funding, which will be used to accelerate product development and market expansion, BranchLab said. The company declined to disclose how much it raised.
The ad industry has accelerated its use of data to target consumers, but healthcare marketers need to be extra careful because of privacy requirements surrounding medical records.
“Regulations on personal data and healthcare are moving at the speed of light and we see an incredible opportunity to help healthcare and pharmaceutical brands not only navigate these changes but help future proof their solutions,” said Walsh.
“We believe new regulations prohibiting the connection of persistent IDs to consumer health data will become the norm across the industry. This means the existing way audiences are built will need to be replaced and advertisers will need an entirely new privacy-safe and scalable solution to effectively reach their patient audiences and drive outcomes. We believe BranchLab is that solution,” Walsh said.
BranchLab's database, dubbed HealthGraph, aggregates anonymized data from over 300 million U.S. residents and information on 2.1 million healthcare providers. Built on a secure cleanroom environment, HealthGraph is updated weekly.
BranchLab applies machine learning to create comprehensive audience models from its anonymized data to enable target advertising and in-flight campaign optimization.
Healthcare generated ad spending of about $23.5 billion in 2023 and is projected to reach almost $34 billion by 2032, according to IMARC Group, BranchLab said.
"nvp is committed to supporting best-in-class founders working to transform industries and the team and mission of BranchLab epitomizes this spirit. Their groundbreaking approach to prioritizing consumer privacy and increasing advertising performance addresses critical market needs while also paving the way for a more privacy-forward and inclusive advertising ecosystem for pharmaceutical manufacturers,” said Vaughn Crowe, managing partner at newark venture partners. “We look forward to working alongside BranchLab as they reinvent healthcare advertising for the 21st century."
