Noyo, an API platform for health insurance data exchange, closed a $12.5 million Series A funding round.
Costanoa Ventures and Spark Capital co-led the financing round with continued support from early investors, including Homebrew, Fika Ventures, Precursor Ventures, Core Innovation Capital, Garuda Ventures, and Webb Investment Network.
The startup plans to use new funds to grow the team, expand the product portfolio, and new connections with benefits platforms and insurance carriers.
Noyo also announced new partnerships with insurance carriers Humana and Ameritas, aimed at improving the overall consumer experience by enabling seamless and secure data connections to enroll members faster and eliminate coverage-impacting errors.
“Noyo is doing something totally new and exciting in our space, and we’re confident that better industry connections will lead to a great health insurance experience,” says Gary Davis, Humana’s National Leader for General Agents, Digital Initiatives, & Small Business Sales. “We have already seen how working with Noyo drives down enrollment costs and improves speed and accuracy at a critical time for Americans needing health insurance coverage.”
According to the company, it builds the digital infrastructure that facilitates data exchange between benefits software and carriers, seamlessly transmits employee eligibility data between benefits administration platforms and insurance carriers via its developer-friendly APIs, and lowers operational costs and enables growth via its secure member data exchange.
“The age of connected health insurance is here,” said Shannon Goggin, CEO and co-founder of Noyo. “It should be simple for someone heading to the doctor to confirm, right on their phone, that they are covered for the visit. Someone considering a new job offer should be able to factor in how the benefits package meets their needs. Noyo works every day to make those experiences possible – we take care of the technology under the hood so software teams can stay focused on building the tools people deserve.”
According to Mercom data, health insurance data exchange software companies have raised almost $1 billion since 2010. Recently, private insurance exchange platform Take Command Health secured $2 million in a bridge funding round led by LiveOak Venture Partners, a venture capital fund based in Austin, Texas.