April 11, 2023 — DENVER, Elevate, a well-known platform for consumer-directed benefits administration, revealed that it has received USD 8 million for growth. In addition to Fin Capital and preexisting investors Norwest Venture Partners, Greycroft, Bowery Capital, and Firebolt Ventures, the round, which Anthemis led, also received funding. With this capital, Elevate will further develop its cutting-edge capabilities, including AI, as well as it is a go-to-market plan and customer acquisition, solidifying its position as the firm that will replace traditional carriers.
Almost 100 million Americans rely on consumer-directed benefits offered by their employers to aid with pre-tax out-of-pocket payments, such as Health Savings Accounts and Flexible Spending Accounts, according to the Employers Council on Flexible Compensation (ECFC). Elevate’s goal is to provide employees with benefits technology that is user-friendly, cutting-edge, and focused on people.
Brian Cosgray, CEO and co-founder of Elevate, stated, “We are thrilled to have the backing of our new investors, who share our vision for the future of benefits technology. Most market-powering legacy systems, including Alegeus, Wex, HealthEquity, Optum, and Payflex, were all created using the finest technological techniques available at the time. Still, they are now confronting a mountain of technical debt. We designed our entire administration platform using the most up-to-date specialized methods. Using modern technologies, we can create a user experience that matches current standards while saving partners 20% on average gross margin.
Elevate stands out among the next-generation challengers with its ability to administer all plan types on a single, unified platform and card, according to Kate Sampson, Managing Director at Anthemis. “Although many have recognized the legacy provider experience was due for a complete overhaul, Elevate stands alone among the next-generation challengers,” she added. “We do not believe that the present point solutions will become widely adopted at a time when businesses are attempting to increase efficiency while simultaneously providing employees with modern, pertinent benefit options. The Elevate team is exceptional in its capacity to comprehend more complex plans and employer needs and apply modern technology to offer an elegant solution, resulting in a greatly enhanced experience for both employers and employees. This capacity comes from decades of deep experience at legacy providers.”
Elevate is a cutting-edge platform for consumer-directed benefits that puts the needs of partners and workers first. Our platform focuses on configurability, embeddability, and real-time automation and is built on a cloud architecture driven by APIs. Elevate was founded because our team of industry specialists realized the need for contemporary technologies in an antiquated sector. To give businesses and workers a seamless experience, we work with forward-thinking partners, including PEOs, TPAs, Health Plans, Benefits Administrators, and Employee Financial Services firms.
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