Health Velocity Capital, a venture capital firm that invests in growth-stage healthcare software and services companies, led the round with participation from existing investors U.S. Venture Partners, Chicago Ventures, Epic Ventures, Brandon Cruz, and Clint Jones, co-founders of GoHealth.
As part of the investment, Saurabh Bhansali, Partner at Health Velocity Capital, will join the HealthJoy board. HealthJoy intends to use the new funds to accelerate the development of its core platform and improve its service.
The company, founded in 2014, extended its business from the individual health insurance market to employee engagement and cost containment in 2016.
The company offers a virtual assistant chatbot called Joy that helps users understand their benefits packages and navigate their care benefits through AI-guided conversation. The chatbot provides 24-7 live care provider support as well as a log of historical claims information and past medial communications. It also offers a price transparency tool and an employee assistance program consisting of round-the-clock counseling services.
HealthJoy has raised a total of $50 million to date, including a $12.5 million Series B round in 2019 and a $3 million Series A round in 2017.
“For example, an MRI in Chicago can vary in price from around $500 for an independent clinic to around $3,500 in a hospital system,” HealthJoy founder and CEO Justin Holland told TechCrunch. “Our rewards platform allows companies to customize the incentive, but we provide nearly 100 recommendations. We’re showing an amazing ROI for companies that have adopted the program since we’re targeting high-cost procedures.”
The company is planning to hire over 200 new employees by 2021.
Tech-enabled healthcare benefits management companies raised over $800 million since 2013, according to Mercom Data.