Elevate – a leading consumer-directed benefits administration platform – announced that it has raised $28 million in growth funding. Led by Anthemis, the funding round has also raised money from Fin Capital and existing investors Norwest Venture Partners, Greycroft, Bowery Capital, and Firebolt Ventures.
The Employers Council on Flexible Compensation (ECFC) reported that over 100 million Americans rely on consumer-directed benefits like Health Savings Accounts and Flexible Spending Accounts, provided by employers to help with pre-tax out-of-pocket expenses. And Elevate’s mission is to deliver people-centric benefits technology that is modern, easy-to-use, and designed around employees.
Along with the funding round, Kate Sampson from Anthemis, and Christian Ostberg from Fin Capital, will join the Elevate Board as observers. Elevate had previously raised $12 million Series A in October 2021 and the new funding round brings the total funding to $43 million.
KEY QUOTES:
“We are honored to have the support of our new investors, who share our vision for the future of benefits technology. Legacy platforms, such as Alegeus, Wex, HealthEquity, Optum, and Payflex that power most solutions in the market were all built using the best technology practices at the time, but two decades later are facing a mountain of tech debt. Our full administration platform is built using the best technology practices of today. By leveraging modern technology, we can save partners an average of 20% gross margin, while delivering a user experience that meets today’s modern expectations. Elevate’s successful fundraise in the current market and the confidence of our investors helps emphasize that we are not only the smarter choice, but with many years of runway on our balance sheet, now the safer choice.”
— Brian Cosgray, CEO and co-founder of Elevate
“Although many have recognized the legacy provider experience was due for a complete overhaul, Elevate stands alone among the next-generation challengers with its capabilities to administer all plan types on a single, unified platform and card. In an age where employers are looking to drive efficiencies while also bringing modern, relevant benefit solutions to employees, we don’t think the current point solutions are going to find scale. With decades of deep experience at legacy providers, the Elevate team is unique in their ability to understand more complex plan and employer needs and apply modern technology to offer an elegant solution – a much-improved experience for both employers and employees.”
— Kate Sampson, Managing Director at Anthemis
“As a firm specializing in B2B fintech, we are always excited about new avenues technology can be deployed to innovate outdated spaces. The platform that Brian and the Elevate team are building is bringing automation and a modern tech stack to the benefits space”
— Christian Ostberg, General Partner at Fin Capital
