Industry Insights
Why LigoLab’s Funding Choice Nearly Two Decades Ago Continues to Benefit the Company and Its Customers
May 27, 2026
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You may know that LigoLab is a leading provider of advanced end-to-end clinical and pathology lab software solutions covering LIS laboratory information system functions, laboratory billing (lab revenue cycle management) workflows, and direct-to-consumer lab testing (TestDirectly), but are you aware of how the software company officially began operations two decades ago?
If not, you're in for a treat.
Funding vs. Bootstrapping for an Enterprise LIS Software Company: Choosing the Right Growth Strategy
LigoLab CEO Suren Avunjian's Forbes Business Council Article
In 2023, LigoLab CEO Suren Avunjian authored an article for the Forbes Business Council that examined the pros and cons to weigh when a new business decides between investor funding and bootstrapping.
Here’s the Linked Forbes Article: Funding Versus Bootstrapping For An Enterprise Software Company
Key Takeaways From the Article
Avunjian noted that both paths have pros and cons, shaping a company's pace and growth. The best choice depends on growth goals and risk tolerance.
"At LigoLab, we made the strategic choice to bootstrap," said Avunjian. "This decision allowed us to grow organically and to be solely accountable to our customers. It freed us from the perpetual cycle of fundraising and the pressure and expectations that come with investor funding."
Avunjian added that LigoLab, as an enterprise LIS laboratory information system software company, prides itself on being customer-centric, and its bootstrapping LIS model made it what it is today.
"Our focus remains, and we're committed to delivering maximum value to our customers instead of appeasing investors," he said.
Discover More: Stability and Performance - The Two Most Important Aspects of a Modern Laboratory Operation
Laboratory Information System Development and a Realized Vision
Now let’s explore how LigoLab evolved from a startup laboratory information system software company into a trusted technology partner for fast-growing, high-demand medical laboratories.
Discover More: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software
The LigoLab Journey: From an Ambitious LIS System Software Vision to Industry Leadership
How It All Began
Roughly two decades ago, Edward Kharatian and Avunjian met under unique circumstances that would shape the future of advanced laboratory information systems. At the time, Kharatian was serving as CIO of Healthline Clinical Laboratories, which was rapidly expanding and preparing to move into a much larger facility. Avunjian, then working for a contracted IT support company, played a pivotal role in making that transition a success.
Kharatian and Avunjian quickly formed an effective partnership, and Avunjian secured a position at Healthline, where he began leading the IT team. As Healthline grew into California's largest privately held lab, the colleagues developed new solutions together. Their efforts inspired the vision for their own laboratory information system software company.
The Decision to Launch LigoLab
In 2006, after Labcorp acquired Healthline, the founders faced a pivotal decision: remain with the company or build something new. They chose to launch LigoLab, drawing inspiration from the Latin word “Ligo,” meaning “to unite” or “to connect,” with the vision of creating a unified laboratory information system platform that seamlessly integrates technical, financial, and administrative workflows.
The Early Days: Garages and Grit
Like many startups, LigoLab’s early years were marked by persistence and sacrifice. The founders worked out of a garage and reinvested every dollar back into product development. During this period, Tony Oganesian, now Managing Partner, played a critical role in building the LIS software while simultaneously maintaining another job.
Despite the challenges, the three partners leveraged their industry reputations and relationships to attract early adopters who believed in their vision. Remarkably, LigoLab secured customers before its lab information system solution was fully developed. Recognizing the need for a more advanced application, these early customers invested in an incomplete product. Their trust not only helped fund and shape the platform but also played a key role in developing diagnostic lab software that enabled organizations to scale, improve operations, and achieve long-term success.
Two Decades of Innovation and Industry Leadership
After two decades, LigoLab leads in future-ready LIS systems and laboratory billing platforms. The company continues to innovate, providing pathology groups and clinical labs with a robust, integrated medical LIS and lab billing platform that supports all forms of diagnostic testing, including genetic testing.
An LIS Model Built on Shared Risk
From the start, the founders saw the need for advanced LIS systems and cost-effective lab billing. LigoLab eliminates traditional upfront costs and licensing fees, offering flexible tiered pricing suited to each lab's needs. This shared-risk LIS model ensures mutual success and growth.
Discover More: Why Medical Labs Should Consider Deeper Alignment with Their LIS System Partner
Built for Today's Operational Pressures
Medical laboratories face greater operational pressures, including rising volumes and shrinking reimbursements. LigoLab continues to deliver comprehensive medical LIS and laboratory billing solutions that improve workflows, accuracy, and efficiency from order entry to payment processing.
By choosing LigoLab, laboratories gain more than just laboratory information system software; they join a forward-thinking community dedicated to advancing diagnostics.
Discover More: LigoLab Informatics Platform - Uniquely Designed to Deliver Maximum Value
LigoLab’s All-in-One Medical LIS & Lab Billing Informatics Platform
The LigoLab Informatics Platform is a configurable, enterprise-grade lab information system that helps pathology groups and clinical labs modernize and grow. It features powerful modules for anatomic pathology, clinical, molecular diagnostics, lab billing, and direct-to-consumer testing (TestDirectly) workflows, all within a single lab database software infrastructure.
This laboratory information and lab billing system setup eliminates the data silos that hold other LIS systems back and enables testing organizations to efficiently manage all departments and operations with maximized interoperability, improved productivity, and reduced denials and audit risk. LigoLab empowers medical laboratories to serve their patients better, differentiate in the marketplace, scale operations, improve compliance, and increase profitability.
Ready to Learn More?
Contact a LigoLab product specialist today and see how an all-in-one informatics and laboratory workflow management solution can transform your business. Take the next step toward innovation; reach out now!
Take Action: Connect with a LigoLab Product Specialist!
Frequently Asked Questions About LigoLab's Founding Story and Bootstrapping Philosophy
Why did LigoLab choose bootstrapping over investor funding?
LigoLab's founders made the strategic decision to bootstrap because it allowed the company to grow organically and remain solely accountable to its customers, rather than to investors. It freed the company from the perpetual cycle of fundraising and the pressure to prioritize shareholder returns over customer value. As CEO Suren Avunjian explained, the model allowed LigoLab to focus entirely on delivering maximum value to its partner laboratories.
How did LigoLab attract its first customers before the team fully built its product?
LigoLab's founders leveraged the strong reputations they had built during their years at Healthline Clinical Laboratories. Early adopters trusted Edward Kharatian and Suren Avunjian enough to pay in advance for a laboratory information system that did not yet fully exist. This trust-based model provided the funding and confidence needed to complete and refine the platform, and those early customers went on to grow into highly profitable labs.
What is the story behind the name LigoLab?
The name comes from the Latin word "Ligo," meaning "to unite or connect." It reflects the founding philosophy of integrating all aspects of laboratory operations, technical, financial, and administrative, into a single, unified platform. The goal from day one was to have a single source of truth for all lab data.
How has bootstrapping shaped LigoLab's business model and pricing?
Bootstrapping enabled LigoLab to build a business model centered entirely on customer success rather than investor returns. The company's pricing model reflects this philosophy by eliminating upfront capital expenses and licensing fees in favor of a flexible tiered structure that scales with each lab's growth. The shared-risk approach means LigoLab and its lab partners succeed and grow together.
What challenges did LigoLab face in its early days?
The early days were challenging, with business meetings held in a garage, every dollar earned reinvested into product development, and key team members working outside the company while contributing to platform development. Despite these obstacles, the founders' reputations and commitment to delivery helped secure early customer trust, which funded the company's growth.
What does LigoLab's platform include today?
LigoLab's all-in-one medical LIS and lab billing informatics platform includes modules for anatomic pathology, clinical laboratory, molecular diagnostics, lab revenue cycle management, and direct-to-consumer lab testing via TestDirectly, all within a single unified database and infrastructure. It eliminates data silos, maximizes interoperability, and supports every diagnostic discipline from order entry to payment processing.
How does LigoLab's bootstrapping model benefit its lab customers today?
Because LigoLab has never been beholden to outside investors, the company can make decisions based entirely on what is best for its lab partners. It means continuous reinvestment in research and development, transparent and aligned pricing, unlimited customer support, and a long-term partnership philosophy, rather than a transactional vendor relationship driven by short-term financial targets.
