New York – Nomad Health, the leading digital marketplace for temporary healthcare jobs, today announced the completion of $63 million in new equity and debt financing. Adams Street Partners led, and all existing investors participated, including Icon Ventures, Polaris Partners, RRE Ventures, .406 Ventures, First Round Capital, and Silicon Valley Bank.
With this financing, the business has raised over $100 million since the company’s inception in 2015. The funding will be used to support Nomad Health’s explosive growth, allowing the company to double down on efforts to hire, invest in the technology platform, and grow its national footprint.
As the demands on the healthcare system have reached historic levels during the COVID-19 pandemic, the need and urgency for temporary healthcare staffing solutions has substantially increased. According to a recent report from the Staffing Industry Analysts, the temporary healthcare staffing segment grew to $19.9 billion in 2020 and is projected to grow another 7 percent to $21.3 billion this year. Now, more than ever, healthcare workers are needed on the front lines, exacerbating an already dire clinician shortage.
Since its founding in 2015, Nomad has been transforming the healthcare staffing industry through its revolutionary jobs marketplace. The cutting-edge online platform streamlines the process of connecting healthcare workers with critical short-term jobs, bringing technology-driven transparency, ease of use and efficiency to the antiquated staffing industry, while also enabling better compensation to clinicians.
The pandemic has driven unprecedented growth for the company. Since the beginning of the pandemic in February 2020, transactions in the marketplace have grown seven-fold. Revenue has grown five-fold, and 2021 revenue to date has already more than doubled full year 2020 revenue. The team has also doubled, now numbering over 170 corporate employees.
“Our work has never felt more important or more rewarding,” said CEO and co-founder Alexi Gharib Nazem, M.D. “Since the beginning of the pandemic, Nomad has been able to move at lightning speed to connect clinicians with hospitals that desperately need staff. In that time, Nomad has sent clinicians to take care of over one million patients in all 50 states. We are truly fulfilling our mission of removing the obstacles between providers and their patients.”
With regard to the possibilities that come with new financing, Nazem added, “What’s additionally exciting about this moment for Nomad as an innovator is that we are observing broad adoption of the technology-first staffing model we have been leading the market toward since we started the company. While there are so many new avenues of growth that this funding will help us explore, we are doubling down on our investments in the platform to support what we expect will be even more rapid growth as we take greater share and as the demand for healthcare staffing continues to accelerate. We firmly believe that honing our leadership within the category will drive tremendous opportunity for the company.”
In addition to the new financing, Nomad Health announced two key executive hires. Kim Howard joins Nomad Health as Chief Client Officer and Jeff Simon joins as Vice President of Product. As a healthcare staffing industry veteran with nearly two decades of experience, Ms. Howard comes most recently from the nation’s largest healthcare staffing company, AMN Healthcare, where she served as the Senior Vice President of Strategic Client Sales building and managing a highly successful national sales team working with the nation’s top health systems to place healthcare workers. Mr. Simon comes from Indeed.com, where he served as a Head of Product. Among numerous accomplishments, Mr. Simon was the core product architect for a fundamental change in the company’s Resume Search business, moving it to a subscription-based model and growing the business by $230M in four years.
Nazem commented on the new hires, “Kim and Jeff are both deeply experienced and respected leaders in the staffing and workforce industry. Each brings best of breed skillsets to Nomad that will help us expand with greater velocity and continue to introduce meaningful innovation to the world of healthcare staffing. Both are known for defining and realizing the future of the workforce sector, and I could not be more excited to have the help Nomad write the future of healthcare staffing.”
Adams Street Partners, an investment firm with $45 billion in assets under management, has invested in numerous category-defining companies, including Robinhood, and within healthcare Lyra Health, Grand Rounds and VillageMD.
Thomas Bremner, a Growth Equity Partner from Adams Street Partners and newly appointed Nomad Health Board member, commented, “It’s clear that Nomad Health has built the best technology to efficiently and effectively connect healthcare workers with jobs and there has never been a more important time for this service. I look forward to working with the leadership team and the company as it continues to experience tremendous growth.”