Kryptiq

2001-2003

Kryptiq Corporation was founded in 2001 by Luis Machuca, Jeff Sponaugle, and Murali Karamchedu, with the company first housed in Machuca's home. Kryptiq opened its first office in Beaverton, Oregon, in October 2001 after securing $2 million in capital. Kryptiq was founded largely by former employees of Intel Corporation as well as those from eFusion looking to use their encryption experience and expertise to provide secure email for the health care field.

By September 2002, the company had grown to 15 employees and had a board of directors heavy on those with Intel ties, such as Andy Bryant. The company's original production was a subscription-based email add-on that allowed physicians to securely communicate with patients and others and data protected by HIPAA. In July 2003, the company purchased software company RosettaMed, with plans to incorporate their software into Kryptiq's existing programs. In August of that year, Kryptiq finished raising $7.9 million in venture capital from investors such as Voyager Capital and SmartForest Ventures. The company continued with acquisitions in November when it purchased MedShape LLC, allowing Kryptiq to expand into the medical records field. Kryptiq retained all six employees who had developed DocuTrak and RosettaStone. By December 2003, the company had grown to 50 employees and projected to be cash flow positive by the end of 2004.

2004-2007

Kryptiq launched CareManager in 2004, a disease management software program. CareManager was developed with Providence Health System, and the program was awarded the e-Health Leadership Award in 2004 by the Disease Management Association of America. Then in January 2004, Kryptiq acquired This Computer Solution Inc. in an all-stock deal. The Vancouver, Washington, company had developed software for managing contracts for health insurers. In January 2005, the company moved from Beaverton to Hillsboro and finished the prior year with 200% growth. By February of that year, Kryptiq had expanded to 60 employees, become a member of the Center for Health Transformation, and added GE Healthcare as a partner.

The company raised $7.1 million in capital in 2005, with investors including SmartForest Ventures, Voyager Capital, and Shelter Capital Partners, with the round closing in April. At the time, Kryptiq was then 65 percent owned by investors. In July 2005, the company announced they would move from the AmberGlen Business Center to a 24,000-square-foot (2,200 m2) space in the Rock Creek Corporate Center along U.S. 26, both in Hillsboro. Shelter Capital Partners, SmartForest Ventures, the Oregon Investment Fund, and others invested another combined $6.6 million in Kryptiq in September 2006.