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Why We Invested: Praos

North Coast Ventures recently made a $250 thousand investment in Praos Health's seed round, recognizing the company's potential to revolutionize the healthcare staffing industry. Praos Health, a dynamic healthcare staffing platform designed to tackle critical staffing shortages in the healthcare industry, aims to empower agencies, candidates, hospitals/facilities, and providers by offering a user-friendly, efficient, and cost-effective solution for connecting and hiring qualified staff.

The company has demonstrated strong traction, exceeding projections in Q1 2024 with over 19 new deals and over $385 thousand in committed annual recurring revenue (CARR). Currently, Praos Health maintains a CARR of approximately $550 thousand from over 25 customers, with a pipeline set to reach $850 thousand CARR and exceed $1 million by year-end. Notably, Praos Health recently closed phase 1, a $50 thousand initial deal with Hyv, a spin-out of Bill Rivard’s Matrix Providers, which is building a marketplace of pre-credentialed clinicians to address the $3 billion annual staffing needs of the US government, with Praos Health and Salesforce.com powering the platform. Additionally, the company closed a second federal deal worth $60 thousand in year 1 with Matrix Partners last week and will soon be selling to the other 10 firms that won the $43B NCG/Federal contract.

The CEO of Praos Health is David Lee, a 25-year HR SaaS veteran with a strong track record. David has founded or co-founded four HR SaaS companies, including WorkforceLogic (VMS), which exited to ZeroChaos for $125 million, and Emportal (HRMS), which exited to SilkRoad Technology. The primary owner and Chairman of Praos Health is Aaron Grossman, a highly successful entrepreneur whose last SaaS venture sold to Bullhorn for $50 million in under five years. Aaron has made a significant investment in Praos Health, underscoring the leadership’s commitment and belief in the company’s potential.

About North Coast Ventures

North Coast Ventures (NCV) is a Cleveland-based early-stage venture capital firm primarily investing in B2B, SaaS companies. With over 470 member investors, NCV is the largest, single-chapter investor group in the country. Since 2006, NCV and its member investors have deployed more than $100M into over 70 high-potential ventures. For more information about North Coast Ventures and its portfolio, visit northcoast.vc