Elevate Raises $12M to Simplify HSA and FSA Benefits
HSAs, FSAs and other tax-advantaged benefit accounts were designed to help employees manage out-of-pocket healthcare costs.
But sometimes the idea of scanning and faxing a receipt from CVS is enough to make one throw up their hands and eat the cost themselves.
That’s where Elevate comes in.
After a year in stealth mode, the Denver-based company publicly launched on Monday with an announcement that it has raised $12 million in Series A funding. When combined with its $3 million in seed funding, the fresh funding brought Elevate’s overall funding to $15 million.
Elevate plans to roll out to 900 customers by the first quarter of 2022, taking on market leader HealthEquity.
The company plans to open an office in the Denver Tech Center in the first quarter of 2022. It currently employs 14 people and plans to hire 12 more by the end of the year.
Elevate is co-founded by former ConnectYourCare founder Brian Strom and former Businessolver executive Brian Cosgray. At launch, Elevate brought on former WageWorks COO Scott Rose as its COO and Melanie Hallenbeck, BenefitExpress’s former chief growth officer, as its CGO.
With a deep bench of industry experience, Elevate said in a statement that it has a “maniacal focus on technology and user experience to challenge bloated, archaic incumbents.”
The company plans to modernize the pre-tax benefits industry by allowing employees to view and manage their benefits from an intuitive dashboard, access all benefits through one contactless card, and receive reimbursement within a matter of minutes.
The Series A funding was co-led by Greycroft and Norwest Venture Partners, with participation from existing investor Bowery Capital.