Pasito, an employee benefits tech startup, has raised $3.25m in seed funding to simplify health and wealth benefits.
The round saw participation from Google, Y Combinator, Core Innovation Capital and FiDi Ventures.
Strategic angels from insurance, healthtech, and SaaS also participated in the round, including the founders of Dropbox, Simply Hired, Namely, Bennie, and Papa.
Pasito said that employees today navigate a complicated maze of policies, accounts and laws when they select and use their benefits. As a result, Pasito said employees often choose health insurance at random and don’t use benefits that could provide a much-needed safety net.
What’s more, Pasito continued, is that 61% of employees elect health benefits they don’t use and under contribute to tax-advantaged accounts like 401ks and HSAs. Less than 10% of employees complete their preventive health screens and nearly 20% use out-of-network services.
However, Pasito is on a mission to simplify health and wealth benefits for employees while saving companies and families money.
The company’s technology integrated directly with a company’s HR systems and processes census, health, financial and family data to guide employees through benefits selection and engagement throughout the year.
According to Pasito, the funding will be used to drive product development, additional data and HRIS integrations, and hire engineering resources.
In an announcement post on the company’s website, Pasito said, “Companies are scrambling to find ways to reduce healthcare costs while balancing employee demand for better benefits in a tight labor market. The rise in healthcare costs is unsustainable for companies. Through Pasito, not only do companies save money on their benefits program, but their employees also save their hard-earned money, while experiencing a superior benefits experience throughout the year.”
Workstream, a mobile-first hiring and onboarding platform for the deskless workforce, recently extended its Series B round with an additional close of $60m, bring the total raised in the round to $108m.
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