Caraway – a digital healthcare company for Gen Z – announced a series of milestones and expansions to fundamentally change how Gen Z experiences healthcare. In order to drive the development of its Gen Z care platform and scale its services, Caraway announced $16.75 million in Series A funding. The funding round was led by Maveron, an investor in consumer-only and early-stage companies, and GV. Returning investors include 7wireVentures and Hopelab Ventures with new participation from Wellington Access Ventures, Ingeborg Investments, and The Venture Collective. OMERS Ventures (a seed-stage investor in Caraway) will remain on the Board.
Furthering its expansion across the country, Caraway also announced that it is rolling out its virtual care services in six more states: Colorado, Pennsylvania, Illinois, Massachusetts, Michigan, and New Jersey. Along with existing states, California, New York, North Carolina, and Ohio, this brings the total to ten states that will offer access to 44% of 18-29-year-olds enrolled in post-secondary institutions, including colleges and universities, trade, and vocational schools.
In just one year, Caraway built an inclusive care model that addresses the multitude of healthcare challenges facing Gen Z by providing mental, physical, and reproductive healthcare, 24/7 all in one place. And Caraway’s diverse care team of experienced clinicians provides comprehensive and compassionate care tailored to this population’s needs and concerns. With its on-the-ground, grassroots approach, the company’s ongoing engagement with Gen Z informs all of its products, services, and educational content. The funding round will be used to expand access to Caraway’s ground-breaking care platform purpose-built for Gen Z people of all races, ethnicities, gender identities, and expressions.
Healthcare has yet to catch up with the needs of Gen Z – which is the largest, most diverse, and disruptive population, and their care options are inadequate.
– The mental health epidemic is getting exponentially worse with 55% of Gen Z classifying their mental health as poor, and they’ve been identified as the loneliest generation.
– Reproductive health restrictions are devastating to women’s health, with 88% of women facing at least one barrier to getting access to oral contraceptives.
– Existing care options are not meeting the needs of young women, as nearly half report negative interactions with their healthcare providers.
– And 75% of Gen Z are concerned that ill health will impinge on their life experiences.
As Gen Z is facing this unprecedented healthcare crisis, they lack access to care and a trusted consumer experience built for their mobile-first expectations. They’ve been excluded from their healthcare decision making and the healthcare system is not meeting their growing needs.
Caraway offers care for members 24/7 through chat, phone, and video visits, as well as health skills building with interactive digital tools, coaching, and care navigation. And Caraway’s clinicians work together as one Care Team with the understanding that the mind and body are connected, and therefore physical, reproductive, and mental care must go hand-in-hand. The Care Team is composed of experienced nurse practitioners, physicians, specialists, therapists, and health advisors with expertise spanning primary care, urgent care, adolescent health, gynecology, psychiatry, and psychotherapy.
KEY QUOTES:
“Gen Z’s health is on the front lines and the only way to meet their needs is to design a new way forward. With the tsunami of unmet need, our inclusive care platform gives Gen Z – and in particular women and those assigned female at birth who have been underserved by traditional models – instant access to both the immediate health services and ongoing education they need to take care of themselves today and in the future.”
— Caraway CEO & Co-founder Lori Evans Bernstein
“Maveron invests in early-stage companies that empower consumers to live on their own terms. Caraway supports young adults in a way traditional healthcare models do not, fundamentally changing their healthcare experience. We are excited to help Caraway’s extraordinary team continue to build a consumer-first company that directly engages with the Gen Z population giving them access to a care platform and high-quality healthcare tailored to their needs.”
— Maveron Partner Anarghya Vardhana
“GV is proud to be an early investor in Caraway, and we are excited to support the team as they create a new standard of healthcare for the Gen Z population. Caraway is led by a seasoned, mission-driven management team adept at navigating the complexities of the healthcare system. Caraway’s unique approach provides comprehensive mental, physical, and reproductive healthcare for better patient outcomes.”
— Cathy Friedman, GV Executive Venture Partner
“We are thrilled to make a follow-on investment in Caraway. We are particularly excited to continue supporting Caraway as they expand their offerings for BIPOC and LGBTQ+ patients, as well as those on Medicaid. Caraway not only understands a unique gap within the healthcare system but offers a solution that focuses on populations routinely overlooked by traditional models of care. Their exceptional progress is a model for others pushing the impact of telehealth innovation while also advancing health equity goals.”
— Margaret Laws, president and CEO of Hopelab, a transformative social innovation lab and impact investor at the intersection of tech and mental health
“What Lori and the entire Caraway team have accomplished in such a short period of time is compelling. Now more than ever, a renewed focus on promoting and supporting the fundamental healthcare rights of women is critical. Caraway is already making a real difference in the health of young women, those AFAB, and by providing personalized care for all. With this new funding round and the addition of strong like-minded investors, Caraway will meaningfully expand their ability to serve more health consumers across the country.”
— Alyssa Jaffee, partner at 7wireVentures
