Why LigoLab’s Funding Choice Nearly Two Decades Ago Continues to Benefit the Company and its Customer

You may know that LigoLab is a leading provider of end-to-end pathology lab software solutions that cover LIS laboratory information system functions, laboratory billing (lab revenue cycle management), and direct-to-consumer lab testing (TestDirectly and TestDirectly.com), but are you aware of how the pathology software company officially began operations nearly two decades ago?

If not, you’re in for a treat. More to come on that as you continue reading.

But first, before covering the genesis of LigoLab as a leading LIS company, I want to call attention to a related article authored by one of the company’s founders. 

Funding vs. Bootstrapping for an Enterprise Software Company: Choosing the Right Growth Strategy

LigoLab CEO Suren Avunjian authored an article for the Forbes Business Council in 2023. In it, he broke down the pros and cons that must be weighed when a new business decides between investor funding or bootstrapping for its funding plan. 

Here’s the Forbes article (published on August 16, 2023): Funding Versus Bootstrapping For An Enterprise Software Company

Forbes Article Summary and Highlights

As Avunjian points out in the article, both paths of investment come with their advantages and challenges, and ultimately the path chosen by the business will shape the pace and trajectory of its growth for years to come. He suggested the right option depends heavily on the company’s growth plans and risk appetite. 

“At LigoLab, we made the strategic choice to bootstrap,” explained Avunjian. “This decision allowed us to grow organically and to be solely accountable to our clients. This freed us from the perpetual cycle of fundraising and the pressure and expectations that come with investor funding.”

Avunjian continued by saying that LigoLab is and always has been an enterprise software company that prides itself on being customer-centric and that the bootstrapping model allowed the company to become what it is today. 

Learn More: Stability and Performance: The Two Most Important Aspects of a Modern Laboratory Operation

“Our focus remains and we’re committed to delivering maximum value to our partner laboratories instead of appeasing investors,” he said. 

Laboratory Information System Software Development and a Realized Vision

Now, let’s take a few moments to look back and see the steps LigoLab leadership took to grow from a start-up laboratory information system software company to a leading provider of enterprise LIS software solutions for the fastest-growing and most demanding medical lab partners. 

Learn More: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software

The Journey of LigoLab: From an Ambitious Pathology Software Vision to Industry Leadership

Roughly two decades ago, Edward Kharatian and Suren Avunjian met under unique circumstances that would shape the future of laboratory information systems (pathology LIS systems). 

Edward was the CIO of Healthline Clinical Laboratories, which was rapidly expanding and required a move to a much larger facility, and Suren, who was working for a contracted company providing IT support at the time, played a crucial role in executing the transition. 

The pair’s instant synergy led Edward to offer Suren a position at Healthline, where he soon became responsible for overseeing the lab’s IT department.

As the company grew into California’s largest privately held lab, processing 5,000 specimens daily, Edward and Suren collaborated on developing solutions not yet available in the lab marketplace. It was there and then that the two recognized the transformative impact of their innovations and began envisioning their own laboratory information system software company. However, their growing responsibilities kept the idea on hold for a little longer.

By 2006, LabCorp acquired Healthline, forcing Edward and Suren to make a critical decision: remain with the newly acquired company or forge a separate path together. They chose the latter, founding LigoLab as a start-up, with the name derived from the Latin word “Ligo,” meaning "to unite or connect." The agreed-upon goal was to develop a unified laboratory information system platform that seamlessly integrated all aspects of laboratory operations, including technical, financial, and administrative workflows.

Like many startups, the early days were challenging. Meetings were held in Edward’s garage, and every dollar earned was reinvested into product development. 

Tony Oganesian, now LigoLab’s Managing Partner, was pivotal in building the LIS system in those early days, even as he worked elsewhere. Despite these hurdles, Edward, Suren, and Tony remained confident, leveraging their reputations and past relationships to gain early adopters who trusted their lab pathology software vision.

What set LigoLab apart back then was securing customers before its LIS software solution was even fully developed. Recognizing the urgent demand for advanced LIS lab solutions, early adopters were willing to pay in advance for a product that did not yet exist. This trust-based model enabled Edward and Suren to refine their LIS software while ensuring their clients received a cutting-edge pathology lab management system that helped them grow into highly profitable labs.

Two decades later, LigoLab has solidified its position as a leader in LIS systems and laboratory billing solutions. The company continues to innovate, offering pathology labs a robust, fully integrated medical LIS and lab billing (lab RCM) software platform that supports clinical pathology, anatomic pathology, genetics, and precision medicine. 

The founders early on also realized the importance of providing advanced LIS and laboratory billing solutions and cost-effectiveness.

Unlike traditional laboratory information system vendors, LigoLab does not require upfront capital investment or licensing fees. Instead, it uses a tiered pricing model that aligns with current economics and each lab’s needs. This shared-risk approach allows both LigoLab and its partners to grow together.

Today’s pathology laboratories face increasing operational pressures, including rising volumes and declining reimbursements. For this reason and more, LigoLab continues to provide modern LIS systems and advanced laboratory billing solutions that streamline workflows, enhance accuracy, and improve efficiency across the entire lab from order entry to processing, lab report distribution, and payment processing. 

By choosing LigoLab, laboratories gain more than just lab information system software - they join a forward-thinking community dedicated to advancing pathology. 

The future of laboratory informatics is here, and LigoLab is powering it.

Learn More: LigoLab Informatics Platform: Uniquely Designed to Deliver Maximum Value

LigoLab’s All-in-One Medical LIS & Lab RCM Informatics Platform

LigoLab Informatics Platform is a comprehensive and highly configurable enterprise-grade laboratory information system software that helps pathology groups and clinical labs modernize and grow efficiently. 

The LIS software platform includes modules for anatomic pathology (LIS pathology), clinical laboratory (LIS medical), molecular diagnostics (molecular lab software), lab revenue cycle management (lab RCM), and direct-to-consumer lab testing (TestDirectly and TestDirectly.com), all fully integrated within one database and unified pathology software infrastructure. 

This laboratory information system setup eliminates the data silos that hold other LIS systems back and enables labs to efficiently manage all departments and operations with maximized interoperability, improved productivity, and reduced denials and audit risk. 

LigoLab empowers laboratories to serve their patients better, differentiate in the marketplace, scale operations, improve compliance, and increase profitability. 

Contact a talented product specialist to learn more about LigoLab’s all-in-one pathology lab management solutions.

Connect with a LigoLab Product Specialist!