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IE-Engines Drives VC Deal

IE-Engine, a provider of software that helps companies pick and manage health care and benefits programs, has raised $6.4 million in first-round financing to enhance its product.

The privately held company has joint headquarters in Gloucester, Mass., and Ottawa, Canada. Kodiak Ventures, of Concord, Mass., was lead investor. RBC Capital Partners, a Toronto affiliate of Royal Bank of Canada, and other previous investors, also participated.

"This technology offers companies a superior way to evaluate and procure their benefits programs through an automated process that allows them to more effectively consider alternatives, reduce costs and make the best possible benefit purchasing decisions," said Lou Volpe, a Kodiak general partner.

IE-Engine is marketed to larger employers, brokers, consultants, and insurance carriers as a way to streamline their procurement processes, reduce cost and administration and save time.

"Exploding health care and benefits costs are a real pain point today for all players in the marketplace," said Greg Connor, director of RBC Capital Partners' fund. "IE Engine has introduced an end-to-end platform to take significant costs out of the procurement process and demonstrate immediate ROI to its customers."

As part of their firm's investment, Volpe and Connor have joined IE-Engine's board of directors, joining cofounders Kevin Reed and Brent Bannerman, and recently appointed James D. Fleck.