Clara Home Care, a technology platform that makes the direct hiring of professional, in-home senior caregivers more accessible and affordable for families, announced it closed a $3.1 million seed round led by Torch Capital, Virtue, and Y Combinator, with participation from several prominent angel investors. Launched last year with deep roots in Northern California, Clara recently announced plans to expand its services nationwide soon.
Problem being addressed: Home care is regular and non-medical assistance provided in a person’s home, helping with daily activities like bathing, cooking, and companionship to support independent living. And Clara streamlines the whole caregiving process from discovery and background checks to scheduling, payroll, and tax filings all in one easy-to-use solution that provides full transparency and ensures compliance. By offering the flexibility of private hiring without the administrative burden, Clara eliminates the high costs and rigid structures of traditional agencies.
How Clara works: Clara’s platform utilizes AI-based tools to match families with caregivers based on skills, availability, and personality fit, promoting longer-lasting, more compatible relationships. And for caregivers, Clara offers significantly higher pay—$25–$30/hour in major metro markets, along with flexible hours and digital tools that simplify daily tasks.
Clara’s entry into the home care market comes at an essential time for senior care in America. Thousands of Americans turn 65 every day, driving unprecedented demand for long-term care. Most of them prefer to age at home.
In its first year, Clara’s approach to home care has created strong demand from families and caregivers alike, delivering over 15,000 hours of care in the San Francisco Bay Area and onboarding more than 1,500 vetted caregivers to its network. The company has grown rapidly, increasing its revenue more than 30-fold since its inception.
KEY QUOTES:
“The home care crisis is only getting worse—families are stuck juggling the needs of both kids and aging parents. They need real help, but traditional agencies just aren’t cutting it. They’re too rigid, too pricey, and too impersonal. Clara offers a more flexible, affordable approach that puts families in control and gives them the tools to ensure their loved ones get the best care possible.”
Jon Levinson, CEO and co-founder of Clara
“We’re thrilled to partner with Clara and support its mission to help families everywhere access the quality in-home care they deserve. The Clara team brings unparalleled experience and a deep understanding of the challenges faced by families navigating senior care. Their innovative approach to combining technology with compassionate, personalized care has the potential to redefine how we think about aging at home.”
Katie Reiner Peykar, Partner at Torch Capital
