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AZ Tech Beat | September 26, 2020

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Medical Referral Source acquired for 11.5M by The Advisory Board

Medical Referral Source acquired for 11.5M by The Advisory Board
Tishin Donkersley

Medical Science Technology

A Tucson-based technology startup Medical Referral Source was recently acquired by a Washington, D.C.-based consulting firm The Advisory board Co. (NYSE: ABCO) for $11.5 million.

Medical Referral Sources is an innovative, high-growth company that provides doctor-to-doctor liaison/referral services between primary care and specialties. The software automates the process, tracks out-migration and positively effect physician alignment.

During their growth, CEO and co-founder Cindy Jordan indicated that they were able to raise $2 million in private-equity funding from many individual Angel investors including Jim Peebles, co-founder of Sunquest Information Systems and members from Desert Angels.

Jordan shared her funding tactics and the journey to an early exit. As most startups think they need or want a ton of money to grow, Jordan shares how Ann Sarabia (co-founder) and her stayed lean and supported their families before they went to Angels.

“[Ann and I] are the truest of true entrepreneur stories, we didn’t have coffers of money and we were able to build the company to a successful exit. We did it truly the old fashion way and also created a space that we could support our family. We started the business with less than $100,000, and that money lasted us almost a year. We took on some friends and family money about the seventh month until August 2012 when we took the product to market and then started raising angel money to make it more scalable. You can most certainly build a tech company in Arizona and for cheaper.”

Jordan comments on the engineering talent in Arizona, “I think there is this idea that there isn’t enough talent in Arizona or specifically in Tucson. In fact, the talent, as it relates to engineers and programmers, is easier to bring people into a company. Unlike other cities where people are being poached out of businesses all the time, what I experienced is that our opportunity was one of the best opportunities out there, being under the radar, and I didn’t have to worry about another company coming along and poaching them. The quantity in the Tucson market isn’t high, by the quality is significant.”

Chairman of Desert Angels, Curtis Gunn comments, “I think the acquisition of Medical Referral Source is a great outcome for the Desert Angels, for Tucson and for Arizona as a whole. There are many investors from around the state who were invested in the company and this liquidity event will return capital to those investors which they can re-invest in other Arizona early stage companies. Our investments help companies grow and create high paying jobs in our local and state economy.”

Separately, Tucson is no stranger to advancements in technology, presidential wins and funding, and recently named one of the “New Hot Spots” for entrepreneurs by Entrepreneur Magazine. In 2013, AZ Tech Beat reported on more awesome from Tucson.

Mintec, a mining management software company based in Tucson recently received the President’s E-Award for Exports, the highest honor a U.S.-based company can receive for expanding exports for their product MineSight.

Startup Post.Bid.Ship. recently closed its third round of angel funding, getting a little over $600,000 from Desert Angels.

AudioEye, Inc. the Tucson-based creator of the Audio Internet ™ has gone public and will expand their coverage in the field of automated Internet.

Pirates are on the move as Gangplank Tucson expands and opens their new co-working space in downtown Tucson and the Tucson Pirate Mansion, a shared living and work space open August 1.

Curtis Gunn, Chairman of Desert Angels, is the first Arizona investor to be appointed to the Angel Capital Association Board, and will serve for three years.