Chicago-based HealthJoy, a company that makes healthcare simpler through the use of artificial intelligence, announced it raised $12.5 million in Series B funding led by U.S. Venture Partners. Epic Ventures also participated in this round along with existing investors Chicago Ventures, Sidekick Ventures, and the co-founders. U.S. Venture Partners general partner Jonathan Root, MD is joining the Healthjoy board of directors in conjunction with this round.
Currently, the U.S. spends $3.5 trillion on healthcare annually — which grew over 30-fold in the last 40 years. In order to remain competitive, employers are passing these rising costs to their employees. Instead of increasing the burden on working families, HealthJoy is focused on simplifying access to healthcare through a modern and digital experience to drive higher value decisions at lower costs.
“Employees are frustrated with healthcare they can barely afford, and employers can’t shift costs any further. Companies now understand that to tackle their total spend they have to address the healthcare costs of individual employees,” said HealthJoy co-founder and CEO Justin Holland in a statement. “We’re attacking each vertical of employee cost by combining our proprietary healthcare technology stack with the best industry partners to deliver an elegant solution for employees, companies, and their HR teams. U.S. Venture Partners has deep experience in healthcare, navigating public markets, and working with teams in the growth stage. We’re excited to have them on our side during our company’s next phase. With the rapid expansion of our team in Chicago and abroad, we’re looking for curious people to help us break down barriers and achieve our mission of making healthcare simple.”
HealthJoy partners with companies to reduce healthcare costs and administrative burden by focusing on the 365 days a year that employees and their families utilize their healthcare benefits. The platform uses a personalized and conversational AI model that incorporates a wide variety of healthcare data including claims, HSA balances, prescriptions, and medical deductibles — which is delivered through an easy-to-use mobile app.
“HealthJoy is offering a holistic solution that meets a previously unmet need in the market. The platform is delighting employees, their families, employer clients, and benefit consultants,” added Root. “The pace at which clients and their employees have adopted HealthJoy is only fueling the excitement of their channel partners, leading to significant and accelerating revenue growth. We’re excited to help this first-class team shape the future of how employees engage with their healthcare.”