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

You may know that LigoLab is a leading provider of advanced 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), 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 as you continue reading.

First, before covering the genesis of LigoLab as a leading LIS company, we 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 and 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 customers. 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 an enterprise LIS software company that prides itself on being customer-centric and that the bootstrapping model has allowed it to become what it is today. 

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

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

Laboratory Information Systems 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. 

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

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

Roughly two decades ago, Edward Kharatian and Avunjian met under unique circumstances that would shape the future of pathology LIS 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 the transition a success.

The pair’s instant synergy led Kharatian to offer Avunjian 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, the men 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 a critical decision: remain with the newly acquired company or forge a separate path together. They chose the latter and launched 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 a garage, and every dollar earned was reinvested into product development. 

Tony Oganesian, now LigoLab’s Managing Partner, played a pivotal role in developing the LIS software during its early days, even while working outside the company. Undeterred by the challenges, the three partners relied on their reputations and trusted relationships to win early adopters who shared their new vision for laboratory pathology software.

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 the founders to refine the LIS software while ensuring that 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 innovative LIS systems and laboratory billing solutions. The company continues to innovate, offering pathology groups and clinical labs a robust, fully integrated medical LIS and lab billing (lab RCM) software platform that supports every diagnostic testing discipline, including genetics. 

From the beginning, the founders recognized the need for advanced LIS systems and laboratory billing solutions that were also cost-effective. Unlike traditional LIS vendors, LigoLab eliminates upfront capital expenses and licensing fees, offering instead a flexible tiered pricing model tailored to each lab’s needs and today’s economic realities. This shared-risk approach ensures that both LigoLab and its partners succeed and grow together.

Today’s medical 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 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 comprehensive and highly configurable enterprise-grade laboratory information system software that helps pathology groups and clinical labs modernize and grow efficiently. 

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

This laboratory information 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 talented product specialist and ask about LigoLab’s all-in-one pathology lab management solutions.

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