Elevate, a leading consumer-directed benefits administration platform, announced that it has raised $28 million in growth funding. Led by Anthemis, the round has also raised money from Fin Capital and existing investors Norwest Venture Partners, Greycroft, Bowery Capital, and Firebolt Ventures. By further enhancing Elevate’s innovative capabilities, including AI, as well as its go-to-market strategy and customer acquisition, with this funding, the company solidifies its position as the successor to the legacy providers.
According to the Employers Council on Flexible Compensation (ECFC), over 100 million Americans rely on consumer-directed benefits, such as Health Savings Accounts and Flexible Spending Accounts, provided by their employers to help with pre-tax out-of-pocket expenses. Elevate’s mission is to deliver people-centric benefits technology that is modern, easy-to-use, and designed around employees.
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“We are honored to have the support of our new investors, who share our vision for the future of benefits technology,” said Brian Cosgray, CEO and co-founder of Elevate.” Legacy platforms, such as Alegeus, Wex, HealthEquity, Optum, and Payflex that power most solutions in the market were all built using the best technology practices at the time, but two decades later are facing a mountain of tech debt. Our full administration platform is built using the best technology practices of today. By leveraging modern technology, we can save partners an average of 20% gross margin, while delivering a user experience that meets today’s modern expectations. Elevate’s successful fundraise in the current market and the confidence of our investors helps emphasize that we are not only the smarter choice, but with many years of runway on our balance sheet, now the safer choice.”
“Although many have recognized the legacy provider experience was due for a complete overhaul, Elevate stands alone among the next-generation challengers with its capabilities to administer all plan types on a single, unified platform and card,” said Kate Sampson, Managing Director at Anthemis. “In an age where employers are looking to drive efficiencies while also bringing modern, relevant benefit solutions to employees, we don’t think the current point solutions are going to find scale. With decades of deep experience at legacy providers, the Elevate team is unique in their ability to understand more complex plan and employer needs and apply modern technology to offer an elegant solution – a much-improved experience for both employers and employees.”
“As a firm specializing in B2B fintech, we are always excited about new avenues technology can be deployed to innovate outdated spaces,” said Christian Ostberg, General Partner at Fin Capital. “The platform that Brian and the Elevate team are building is bringing automation and a modern tech stack to the benefits space”
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