Chicago-based HealthJoy, a digital employee benefits platform leveraging artificial intelligence, has raised $12.5 million in Series B funding in a round led by US Venture Partners, according to a release from the company. Epic Ventures also came to the table alongside prior backers Chicago Ventures, Sidekick Ventures and HealthJoy’s cofounders.
Dr. Jonathan Root, a general partner at US Venture Partners, will also be taking a position on HealthJoy’s board.
What they do
First founded in 2014, HealthJoy expanded its business from the individual health insurance market to employee engagement and cost containment in 2016. Key to the company’s approach is Joy, a virtual assistant that helps users understand their benefits packages and navigate their care options through an AI-guided conversation. Along with easily integrating and displaying an individual’s coverage, the platform includes 24-7 live care provider support as well as a log of historical claims information and past conversations.
HealthJoy’s most recent funding comes roughly a year and a half after its Series A round, which drove $3 million in new backing during the summer of 2017.
What it’s for
Cofounder and CEO Justin Holland said in a statement that the company will be looking to expand its team, both in the main Chicago office as well as abroad.
“Employees are frustrated with healthcare they can barely afford, and employers can't shift costs any further. Companies now understand that to tackle their total spend they have to address the healthcare costs of individual employees," cofounder and CEO Justin Holland said in a statement. “We’re attacking each vertical of employee cost by combining our proprietary healthcare technology stack with the best industry partners to deliver an elegant solution for employees, companies, and their HR teams."
Market snapshot
A handful of other startups are also looking to convenient digital platforms as the answer to employee benefits engagement. Limelight Health, Lumity and League have each raised substantial fundraising for their respective employer-focused software platforms.
On the record
“HealthJoy is offering a holistic solution that meets a previously unmet need in the market. The platform is delighting employees, their families, employer clients, and benefit consultants,” US Venture Partners’ Root said in a statement. “The pace at which clients and their employees have adopted HealthJoy is only fueling the excitement of their channel partners, leading to significant and accelerating revenue growth. We’re excited to help this first-class team shape the future of how employees engage with their healthcare.”
