Consumer benefits management platform Elevate announced today that it has raised $28 million in a funding round led by Anthemis with participation from Fin Capital Norwest Venture Partners, Greycroft, Bowery Capital and Firebolt Ventures.
The new cash, which will bring Elevate’s total revenue to $43 million, will be used for product development, hiring and customer acquisitions, CEO Brian Cosgray said.
In an email interview, he told TechCrunch, “Working at legacy companies, Elvat’s founding team saw what the industry lacked – dynamic and flexible technology.” These legacy company platforms were built twenty years ago using best practices, but a lot has changed in two decades. Elevation is starting from the ground up, using today’s best technologies like AI, to meet the needs of employees from the ground up and deliver what they expect from a modern experience.
Cosgray, whose background is in private wealth management, co-founded Elevate after selling his previous startup, DoubleNet Pay, to Purchasing Power in 2018. At Elevate, he wanted to address some of the major pain points in the employee benefits process, such as long lead times. Claim return period.
Using Elevation, employees can view, plan and manage pre-tax benefits from a web or mobile dashboard. Elevate offers instant payments for benefits like health savings accounts and flexible spending accounts, and a contactless card that supports popular mobile payment providers (such as Apple Pay).
Claims are processed “instantly” through Elevate, Cosgray says, and managers also receive reports quickly (if sales levels are to be believed).
“Legacy benefits platforms still use people behind the scenes to process claims. On average it takes up to three working days to process a claim,” said Cosgrey. “Elevate’s platform uses AI technology, so claims are processed faster.”
It occupies a niche – employee benefits forums – that are full of providers, some of which are direct competitors. Fringe and Forma allow companies to offer customizable benefits and perks to employees. Coby is developing an employee benefits “super app” that includes payment card and payroll software integrations.
Cosgray attributes the outbreak to Elevate’s growth, which has encouraged businesses to seek “efficient and technologically leveraged partners” to adapt to changing workplace needs.
“The way modern business is done is changing and that change can only help us because our platform is scalable and structured to meet the needs of our partners and grow with them,” he added. “WWith our new capital, we are not only smarter, but also a sustainable option, which is critical for employees and employers using the platform.
Cosgray says Elevate has formed more than half a dozen partnerships that serve a user base in the “six-figure” range. He wouldn’t elaborate on revenue or burn rates, though the new funding has more than three years of runway for Elevate, which has 45 full-time employees.
Antimis managing director Kate Sampson, an investor, says in an email: “Although many recognize that the legacy carrier experience is due for a complete overhaul, Elevate stands alone among next-generation challengers with its ability to manage all plan types in one, single platform and card. In an era where employers are looking to drive efficiency while also bringing modern and relevant benefits to employees, we don’t think existing point solutions will strike a balance.