Kevala lands $12.1M to address worker shortages for healthcare companies

Seattle-based Kevala, which helps healthcare facilities find and manage workers, has raised $12.1 million.

The startup supports staffing, compliance and more for healthcare customers. It’s focused initially on long-term care organizations, including senior living and skilled nursing facilities, which are suffering from worker shortages exacerbated by the pandemic.

“The staffing crisis has made it difficult if not impossible for schedulers to keep shifts full, compliant and productive,” said Todd Owens, Kevala co-founder and CEO, in a statement announcing the funding. “Healthcare operators, stretched thin and unable to rely on permanent staff alone, are looking for more flexible staffing options, including agency and internal float teams.”

Kevala’s software enables healthcare facilities to schedule workers, organize the labor pool and track caregiver credentials. Customers can manage in-house staff via the platform or broadcast open shifts to preferred agencies to pull in temporary staff.

Customers can also tap into Kevala’s pool of more than 1,000 registered nurses, licensed practical nurses and certified nursing assistants, located in Washington, Oregon, Utah, Montana and Texas.

The company has grown from five to 20 corporate employees since raising $4 million in January 2021, less than a year after it spun out of Seattle startup studio Pioneer Square Labs. Hundreds of healthcare facility customers across the five states use Kevala’s platform, including pilot partner Aegis Living, a large assisted living company based in Bellevue, Wash.

The pandemic has put extra pressure on staffing needs during a time of high burnout and attrition in the healthcare workforce. That’s also led to soaring demand for temporary nurses and other workers.

Several other companies also offer similar services to help fill the gap for a range of healthcare customers. For instance, the parent company of SnapNurse, an on-demand medical staffing platform, raised $17.8 million last fall, and CareRev raised $50 million last spring.

The new funding will enable Kevala to expand its services to more states and build up its platform capabilities. According to a spokesperson, the company aims to offer customers “more control, more transparency, and better insight so they can make staffing decisions that lead to better care for their residents.”

Owens previously led staffing company TalentWise, which was acquired by Sterling Talent Solutions. Owens was also CEO at Appuri (acquired by DocuSign) and Azuqua (acquired by Okta).

The new Series A round of funding was led by Cercano Management (formerly Vulcan Capital), with participation from existing investors Costanoa Ventures, High Alpha, and PSL Ventures.