Modern Benefits Platform Benepass Raises $12 Million

By Noah Long ● Oct 3, 2021
  • Modern benefits platform Benepass raises $12 million in Series A. These are the details.

Benepass – a modern benefits platform for People-forward companies – announced today it has raised $12 million in Series A funding led by Threshold Ventures. And other participating investors in this round include Modern Venture Partners, Operator Partners, and Alumni Ventures Group, as well as existing investors Gradient Ventures and Global Founders Capital. With this funding round, Mo Islam from Threshold Ventures will join the Benepass Board.

Companies use Benepass for consolidating tax-advantaged accounts and perks and stipends onto a single platform for their employees. And each employee receives a Benepass Visa card with their benefits and a web portal and mobile app to track spending, check balances, and request reimbursements.

The common stipends include wellness, professional development, meals, hybrid work, and recognition. And the pre-tax suite includes Flexible Spending Accounts, Health Savings Accounts, and Commuter. Companies will engage on average 80% of their team after six months using Benepass.

People-forward companies like Bright Health, Wix, Jamf, and Mural deploy a variety of benefits powered by Benepass. For example, Bright Health funds a monthly Lifestyle Spending Account and contributes to the Health Savings Account. Wix gives a biweekly meal allowance. Jamf offers employees a stipend to furnish their home office. And Mural deploys a monthly wellness stipend and annual budget for professional development.

The funding will help accelerate product growth, including additional admin capabilities, integrations, and internationalization, and grow the team.

KEY QUOTES:

“The future of work is flexibility. We built Benepass to help companies deliver an employee-led benefits experience focused on choice. Every employee’s experience with benefits should be meaningful, personalized, and delightful. At the end of the day, it’s about companies taking care of their people, their most important asset.”

— Jaclyn Chen, co-founder and CEO of Benepass

“Benepass is building the leading employee benefits platform for the future of wellness and work. In this new hybrid work environment, Benepass helps companies take care of their employees with benefits that range from meals to mental wellbeing, with a world-class user experience on a global scale. We are thrilled to partner with Jaclyn and the Benepass team to join them on this mission.”

— Mo Islam, Partner at Threshold Ventures