Modern Health Savings Account Company Lively Raises $27 Million

By Noah Long ● October 24, 2019
  • Lively, the creators of a modern health savings account (HSA), announced it raised $27 million in funding

Lively — the creators of a modern health savings account (HSA) founded by Alex Cyriac and Shobin Uralil — announced it raised $27 million in Series B funding led by existing investor Costanoa Ventures with participation from Ally Ventures (the strategic investment arm of Ally Financial), Liquid 2 Ventures, PJC, Teamworthy Ventures, Streamlined Ventures, and Y Combinator.

Including this round of funding, Lively has raised over $40 million in order to accelerate its goal to transform the way Americans save for healthcare.

“Healthcare continues to be the number one reason Americans go into debt. We are committed to creating a better financial future by revolutionizing the healthcare savings experience, and we know HSAs are an unparalleled savings vehicle,” said Cyriac. “We couldn’t be more excited to use this funding to expand our offerings and strengthen our product for our customers. This will ensure employers will have the most robust option to help their employees save for the future. ”

This round of funding will be used for expanding Lively’s HSA experience for encapsulating all of the health and finance tools consumers need to make better-informed healthcare decisions. And through further investments in technology, an expansion of consumer tool offerings, and growing its passionate team of professionals in healthcare, payments, and customer service, Lively plans to continue to personalize and modernize healthcare saving and spending.

“It’s been exciting to watch Lively become not only the fastest-growing HSA provider on the market, but also the number one choice for consumers. Alex and his team are true visionaries and we’re excited to provide additional support to help them in their next phase of growth,” added Mark Selcow, partner at Costanoa Ventures. “This is only the beginning of their potential and we’re confident this funding will help them achieve their mission to revolutionize healthcare savings.”

Lively was named one of the top HSAs this year by Morningstar. And Lively has saved consumers over $1 million in HSA fees and has seen significant demand from individuals, families, and companies across the country since its launch.

By the end of 2021, it is expected that there will be $88 billion in HSA assets held in over 30 million accounts so the need for a modern HSA has never been higher.

Lively offers debit processing powered by Visa, investments through TD Ameritrade, and functionality through iOS and Android apps — which features healthcare deductible spend tracking and zero fees for individuals and families.