Scribed success

Investing in startups usually comes with a caveat: Most companies don't make it, at least not enough to make the investment pay off in a big, or even moderate, way.

That's why investors with Naples-based Tamiami Angel Funds are taking a victory lap. The investors, through Tamiami Angel Fund III, put $265,000 into a medical transcription service for physicians in July 2017. That company, iScribes, was acquired in late 2017 — delivering an internal rate of return of 32% to Tamiami Angel Fund III, according to a statement. Publicly traded Nuance Communications acquired Durham, N.C.-based iScribes for an undisclosed amount, the release adds.

“Our investment in iScribes was the kind of home run that angel investors want to hit when they invest in early stage companies,” Tamiami Angel Funds Chairman Timothy Cartwright says in the statement. “Angel investors take significant risk on early stage companies with the understanding that only a few will reach successful exits and we are proud to say this was one of them.”

The return was the highest return on an investment since Tamiami Angel Fund III was launched in October 2016.

iScribes equips physicians with a mobile app and wearable technology to record patient visits, enabling trained virtual medical scribes to complete all necessary medical documentation. iScribes, the release adds, has incorporated leading security features to ensure that their technology is 100% HIPAA compliant.

The firm was born out of the frustration of its co-founder, Dr. Jared Pelo. “Once I started practicing medicine, I quickly saw how burdensome documentation had become,” Pelo says in the release. “Doctors were burning out. Counterintuitively, technology didn't seem to help. In fact, the adoption of widespread electronic medical records just made matters worse for overworked doctors, nurse practitioners and physician assistants.”

Pelo says he was grateful for Tamiami Angel Funds. “Tamiami Angel Fund invested at a critical juncture in the growth of the company,” he says in the statement, “and in addition to the investment offered sage business advice.”