Healthcare fintech PayZen raised $20 million in an fairness funding spherical led by 7wireVentures and acquired a $200 million credit score facility from Viola Credit score.
Others taking part within the fairness increase embrace earlier traders SignalFire, Hyperlink Ventures and Picus Capital. Lee Shapiro, managing accomplice at 7wireVentures and former chief monetary officer of persistent care administration firm Livongo, will be part of PayZen’s board.
WHAT THEY DO
Based in 2019, PayZen touts a “care now, pay later” mannequin for healthcare. The startup pays suppliers for sufferers’ invoices after which makes use of synthetic intelligence to create individualized reimbursement plans lasting as much as 60 months with no curiosity or charges.
The startup companions with well being methods to combine its platform into suppliers’ income cycle administration methods. Final 12 months, it introduced it was working with Danville, Pa.-based Geisinger.
PayZen additionally provides a debit card that sufferers can use earlier than they obtain healthcare providers, like for recurring appointments for persistent situations or pharmacy spending. It plans to make use of the capital to scale operations and product growth.
“This thrilling spherical is a testomony to PayZen’s product innovation and the immense want for extra inexpensive cost choices for sufferers who’re making an attempt to pay their medical payments,” PayZen cofounder and CEO Itzik Cohen mentioned in a press release. “Healthcare fairness and affordability is a foundational downside within the U.S. Too many Individuals have delayed or foregone getting the care they want as a result of they aren’t supplied an inexpensive method to pay. At PayZen, we’re decided to assist repair this damaged system.”
Healthcare affordability is a serious concern within the U.S. Based on a survey by the Kaiser Household Basis, almost half of U.S. adults say it is extremely or considerably troublesome for them to afford their healthcare, and one third mentioned they or a member of their family has delayed care as a result of value.
A current Gallup ballot discovered three quarters of respondents gave healthcare affordability within the U.S. a failing grade.
Different well being tech firms centered on cost embrace Cedar, which raised $200 million final 12 months however just lately laid off 24% of its workforce; Inbox Well being, which scooped up $15 million in Collection A funding in 2021; and Cherry Applied sciences, which acquired a $50 million credit score facility earlier this 12 months.