Burst, a company focused on simplifying how consumers use health savings account (HSA) and flexible spending account (FSA) funds, announced that it has raised $3 million and rebranded from its previous name, Float. The company also disclosed a $2.1 million seed round led by Pear VC, with participation from Rock Health Capital, Meridian Ventures, Alumni Ventures, and a group of additional funds and angel investors.
The rebrand reflects the company’s mission to help consumers automatically receive reimbursements from their HSA and FSA accounts when they purchase eligible items. According to the company, billions of dollars in available healthcare benefits remain unused each year because the reimbursement process is often complicated and inconvenient for consumers.
Burst’s platform operates post-purchase, allowing shoppers to pay for health-related purchases using any payment method they prefer. After the purchase, the platform identifies eligible items, notifies customers, and automatically files reimbursement claims with the customer’s plan administrator.
The company says this approach simplifies the reimbursement process and helps consumers access tax-advantaged healthcare funds that might otherwise go unused.
Burst also highlights the opportunity for merchants. By enabling automated reimbursement for eligible purchases, the platform allows merchants to tap into a segment of customers who often spend significantly more each year. According to the company, merchants using the platform have seen up to a 30% increase in basket sizes and a 42% improvement in retention.
The company says it is already working with wellness brands and retail partners and plans to continue expanding its partnerships as it builds out its platform.
