LOCAL BUSINESS
Kit Check receives
$15 million investment

District-based Kit Check, which automates the replenishment of medication kits for hospitals, on Monday announced a $15 million investment led by health-care giant Baxter International.

This is Kit Check’s third round of fundraising. The company, located near Dupont Circle, makes software and radio-frequency identification tag readers that help technicians and pharmacists refill medical trays, or “kits,” stationed for emergencies throughout hospitals. The technology takes about an hour to install, the Kit Check website says.

The company was founded in 2012 by Kevin MacDonald and Tim Kress-Spatz, Villanova University graduates with computer-science degrees. It employs about 73 people.

“The investment proceeds will be used to fund our continued expansion of the Kit Check user-base, along with further development of the Narc Check and Kit Check analytics products,” MacDonald, the chief executive, said.

He said the firm will also add to its product and sales teams.

This investment follows fundraising rounds of $10.4 million in 2013 and $12 million last year. The total raised from outside sources is $37.4 million.

Other C Round funders are Kaiser Permanente Ventures, Rex Health Ventures, New Leaf Venture Partners, Easton Capital Investment Group, LionBird, Sands Capital Ventures and Black Granite Capital.

— Thomas Heath

ONLINE RENTALs
N.Y. bill would ban
ads for apartments

A proposal to outlaw online advertisements for short-term New York City apartment rentals on sites such as Airbnb has cleared the state legislature.

It’s illegal to rent apartments for less than 30 days in the city.

The measure heading to Gov. Andrew Cuomo (D) would establish fines of up to $7,500 for advertising online or elsewhere for short-term rentals, which have expanded online.

“Airbnb has created a black market for illegal hotel operators,” said Assemblywoman Linda Rosenthal (D), a bill sponsor. The practice reduces affordable housing, she said.

Josh Meltzer, Airbnb head of public policy, said lawmakers “cut a last-minute deal with the hotel industry.” He called the bill “a bad proposal that will make it harder for thousands of New Yorkers to pay the bills.” Airbnb’s analysis shows that about 24,400 city hosts have made rentals.

The civil penalties range from up to $1,000 for a first offense, $5,000 for the second and $7,500 for the third.

New York State Attorney General Eric Schneiderman, who investigated Airbnb rentals from 2010 to 2014, said his office found that 72 percent of the units in the city were illegal.

— Associated Press

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