Nashville-based Shareable Ink (@ShareableInk) has raised $5 million from Lemhi Ventures to enhance R&D efforts for their software which transforms handwritten doctors’ notes into data.

Shareable Ink’s cloud-based service allows physicians to choose between paper-based data collection.

This choice is then automatically digitized using custom algorithms developed by the company, or the newly launched iPad app, which enables data input using either free form with a keyboard or they can toggle to a structured interface with drop-down lists and check boxes.

“Today, quality venture capital is highly selective, only focusing on the companies and teams that showcase the most meaningful offerings and the best talent,” said Stephen S. Hau, President and CEO, Shareable Ink. “We are thrilled by Lemhi Ventures’ endorsement and our shared vision of helping the business and practice of healthcare become more data-driven.”

“We are encouraged by the practical transformation that Shareable Ink brings to the intersection of clinical and administrative data. We have studied the challenges of provider adoption to health information technology and have been impressed by the ease, cost and flexibility of the Shareable Ink platform,” said Tony Miller, managing partner of Lemhi Ventures. Miller will become chairman of Shareable Ink’s board under terms of the deal.

The Shareable Ink investment is the first deal closed by Lemhi Ventures from their second fund, which was formerly launched earlier this month with $150 million and a very broad mandate to invest in how health care services are financed, how health care information and transactions are processed, and how care is delivered.

“Lemhi Ventures was organized around the belief that disruptive new business models will deliver changes that the health care system requires,” said Tony Miller, company founder and managing partner. “Our first round of investments has shown that innovative new companies can have a powerful impact. Today’s announcement validates our investing thesis.”

“No matter what course the national health care reform debate takes, there will be business opportunities to repair three fundamental flaws in the health care system,” said Miller. “Lemhi will continue to invest in companies that link health care financing more directly to the underlying realities of epidemiology, that increase the value of every dollar of health care spending by delivering measurable improvement in health outcomes, and that build the information infrastructure required to make the health care system more effective and more accountable. Our investment team has an unshakable focus and deep experience finding innovative new companies in these areas.”

Shareable Ink has at least 50 customers across the country and will be ramping up the marketing of its iPad app with this new funding.