FinTech startup Level has hauled in $27m in a Series A funding round led by Khosla Ventures and Lightspeed Venture Partners.
Other investors including Operator Collective and angels also participated in the financing, along with previous backers First Round Capital and Homebrew. While the firm refrained from providing any specifics, the round was reportedly raised at a “nine-figure” valuation.
It will use the funds to accelerate its expansion into insurance and continue to build smarter benefits products for employers and their teams. Level aims to develop its full-stack platform and build end-to-end tools, from automated underwriting to real-time benefit analytics.
With the new insurance product, businesses pay a fixed amount each month and can get money back for unused benefits. On the other hand, smaller businesses can get more cost predictability which helps them better manage their budgets.
Founded in 2019, New York City-based Level says it’s “rebuilding insurance from the ground up” with the goal of helping employers and employees get the most out of their benefit dollars.
By using the platform, employers will be able to tailor the benefits they would like to offer their employees as well as process claims in four hours which sometimes can take months, it said.
Commenting on the firm’s growth in the wake of the pandemic, Level CEO Paul Aaron said that the healthcare emergency worldwide made it even more important for businesses to prioritise employee wellbeing. “Covid-19 taught us that people rely more on their employers for health and wellness, especially during times of crises.
“Benefits aren’t just a way to attract top talent, they also impact people’s financial well-being. Despite the big dollars that businesses put into benefits, many people still pay out of pocket,” Aaron said.
Meanwhile, Khosla’s Samir Kaul said, “Level can do for insurance and benefits what Square Cash did for person-to-person payments—and their team comes straight from building similarly transformative products.”
Echoing a similar sentiment, Jana Messerschmidt from Lightspeed Venture Partners added, “Employers already spend so much money on benefits, and neither they nor their teams get enough out of it. Level offers a far superior employee experience, and you’re getting bang for your buck.”
While the firm launched as an employer-sponsored dental benefits firm, it also now offers vision plans. The company has more than 10,000 members from companies such as Intercom, Udemy, KeepTruckin and Thistle that have paid for care via its platform.
Indeed, a host of companies have already reaped the benefits by leveraging the firm’s services. Investor First Round Capital saved 47% by switching from fully insured to Level. And, Thistle saw 41% in savings by switching to Level.
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