Gravie Announces $10.5M Series A Funding To Help Meet Demand for Insurance Independence Minneapolis-based startup is poised for rapid growth
MINNEAPOLIS, March 17, 2014 /PRNewswire/ -- Gravie announced today that it has raised $10.5 million in a Series A financing round led by Aberdare Ventures. Existing investor FirstMark Capital also contributed to the round, which brings the total funding raised by the company to $13M. The funding will enable the company to scale up its operations and expand its services to all 50 states by 2015.
As part of the investment, Aberdare Ventures partner Mohit Kaushal, MD, will join Gravie's Board of Directors. Kaushal was most recently the chief strategy officer and executive vice president of Business Development at West Health. He was also part of a team of healthcare policy makers in the Obama administration, where he served as a member of the White House Health IT task force. During his time in the administration, Kaushal was the director of Connected Health at the Federal Communications Commission, where he established the agency's first dedicated healthcare team.
"We are thrilled to welcome Mo Kaushal to our Board. Mo's extensive healthcare knowledge and work at the White House will help us as we work to transform how people access healthcare in the U.S. Our partnership with FirstMark has been crucial to our early success, and now we are excited to add Aberdare to the team," said Abir Sen, co-founder and CEO of Gravie.
Gravie helps individuals and employees select and buy their own insurance coverage, choosing from both private market and public exchange options. Gravie also provides its members with a number of concierge-level after-sale services, including ongoing advice and support, trouble-shooting with health plans, an integrated analysis of healthcare spending across all healthcare accounts, help with understanding and paying doctor and hospital bills, and management of these and other healthcare services on one customized platform.
Consumers have praised Gravie for its focus on design and a simplified user experience. While many consumers experienced frustration with technical glitches on state insurance exchange websites, Gravie's ability to offer people quick and easy access to health insurance options has resulted in high customer service ratings. Over 98 percent of users have rated the service fantastic (83 percent) or good (16 percent).
Kaushal says the time is right for Gravie to build its presence nationwide. "I'm very impressed by the amount of progress Gravie has made in such a short time. The Affordable Care Act has brought in a new era in which the group insurance plan may no longer make the most sense. Individuals who buy insurance on their own are no longer at a disadvantage compared to employer-sponsored coverage, and the individual market may be the right answer for many employers looking to provide coverage to their employees," he says. "Gravie will fundamentally change the individual's experience with health insurance from start to finish and also help individuals and employers manage escalating healthcare costs."
Gravie is committed to creating insurance independence by bringing smart solutions that help consumers and employers maximize the new insurance marketplace. Gravie takes the administrative work away from employers and helps consumers select and buy insurance coverage, providing ongoing customer support, trouble-shooting with health plans, analysis of healthcare spending, and management of all healthcare affairs on one customized platform. Gravie was founded in 2013 and is headquartered in Minneapolis. For more information, go to www.gravie.com.
About Aberdare Ventures:
Aberdare Ventures is invested in the idea that people and technologies together can transform the field of healthcare. Focusing on systemic efficiencies and global opportunities to support an array of new technologies, they recognize both the challenges and the potential for cost effective solutions in the field. The demand for better healthcare, often for solutions that are simpler and more efficient, requires a space for the convergence of resources and entrepreneurship. Aberdare Ventures fosters this connection and creates an intersection of health and technology. Their approach dramatically changes information management, communications, diagnostics, and therapeutic discovery and delivery for better and greater access to care. For more information, please visit www.aberdare.com.
About FirstMark Capital:
FirstMark Capital is an early stage venture capital firm based in New York City. Our mission is to partner with exceptional entrepreneurs who are changing the world by solving meaningful problems. We have built a deeply engaged community among the extraordinary teams in our network to spread ideas and opportunities. We are privileged to work alongside the founders of remarkable businesses like Pinterest, Lumosity, Aereo, TapAd, Shopify, Riot Games, and dozens more. Visit us in New York City or online at firstmarkcap.com and @FirstMarkCap.