News reports over the past two years have highlighted the challenges hospitals and other healthcare organizations have had to procure masks, gloves and other essentials as hospital wards overwhelmed with COVID patients.
Button co-founders J.T. Garwood and Jack Miller heard the call and founded the company in Seattle in March 2021 after seeing the challenges healthcare organizations face in not only sourcing consumables but also pricing them fairly.
The company’s B2B e-commerce market offers a wide variety of well-known brand medical products, saving its customers an average of 20% to 40%, as well as providing a more convenient ordering and delivery process.
“From a supply chain perspective, the pandemic was the pinnacle of horror,” Garwood told TechCrunch. “There were a lot of backorders and major manufacturers stopped production. We felt this was an opportunity to take a step forward during a busy time to help practice owners save time and money and gain access to products that they could not get through their traditional channels.”
The work has paid off, he added, and clients will “come back in droves.” With over 2.5 million products currently on the market, Bttn continues to change the way healthcare distribution is managed.
The company pursuing USA Medical Wholesale Market valued at $307 billion this year, experiencing explosive growth since we profiled bttn $5 million seed round in August 2021. At that time, the company worked with 300 clients, including individual clinics, surgical centers and more than 17 healthcare associations throughout the country.
That number jumped to 7,000 customers today, Garwood said, including more than 500 healthcare providers that purchased supplies through bttn for the first time in April. During this month, the company added eight distribution and fulfillment centers. Between August and May, bttn also increased the number of employees to 75 (from 10) and increased gross sales by 1000%. In May, the company reached the milestone of more than 1,000 orders.
With all this demand and activity, bttn is back with a big round and a prominent lead sponsor. Today, the one-year-old company is back with $20 million in Series A funding led by Tiger Global, matching its $110 million post-money valuation. Fuse also participated in the round.
Garwood explained that the search for new capital would give the company a runway to accelerate its mission to become “the distributor of choice for every medical practitioner across the country and bring transparency to the entire ecosystem.”
“They can use digital parts of the supply chain that they have never been asked to use before,” he added. “Now is an important time because the ecosystem is ripe for it. Also, while funding markets have slowed down, it is clear that companies with great prospects and economies are getting funded, and that is what we are doing.”
Garwood intends to use the new funding to further grow and expand bttn’s workforce, focusing on improving the customer experience to remove barriers that prevent them from making purchases faster and easier, and to attract more customers.
Bttn is also continuing to work on distribution opportunities amid changing consumer behavior in favor of fast package delivery. Over the past year, the company has been able to reduce delivery times from 12-21 days to 1-5 days across the country.
“When we approached this large and legacy market, we knew we could do more to help them and impact many different levels of the supply chain,” said Garwood. “Achieving them will not be easy, but if we rise to the challenge and scale the way we believe we should, we must.”
Credit: techcrunch.com /