“Forty-five percent of patients would knowingly skip elective care if the out-of-pocket cost responsibility were greater than $1,000 — this isn’t okay,” said Garrett Smallwood, co-founder and CEO of Finrise.
SAN FRANCISCO, CA (PRWEB) October 19, 2016
NFX Guild-backed Finrise, an ambitious healthcare marketplace that provides a seamless way to finance elective healthcare services - today announced $5.4 in committed debt and equity financing from prominent institutional and angel investors, the addition of seasoned bank executive Richard Lewis as Chief Risk Officer and Head of Capital Markets, and the launch of Vetary.com.
“Forty-five percent of patients would knowingly skip elective care if the out-of-pocket cost responsibility were greater than $1,000 — this isn’t okay,” said Garrett Smallwood, co-founder and CEO of Finrise. “Finrise is steadfast in our mission to simplify elective healthcare purchases for families. We are working tirelessly to make purchasing healthcare services as simple as checking out on Amazon.”
The round was led by Mayfield, a top-tier venture capital firm, with participation from the NFX Guild, Western Technology Investment, and an impressive list of angels including Sam Hodges (co-founder, Funding Circle) and Matt Humphrey (CEO, LendingHome). Finrise will use the funds to accelerate the availability of its elective healthcare financing solutions in key markets across the United States.
"Finrise fundamentally improves both the patient and doctor experience for healthcare transactions that require a high out-of-pocket payment, removing fear about the next doctor visit, and enabling doctors to provide service without the limitation of the patient's bank account,” said Tim Chang, partner, Mayfield. “We are very excited to partner with the Finrise team and to build out a new type of healthcare marketplace focused on satisfaction, accessibility, and radical transparency."
According to recent studies, the U.S. is in the middle of a massive shift in consumer coverage. The number-one driver of bill payment problems today is cost-sharing in high-deductible plans, which constitutes about 25% of the privately insured, up from just 8% in 2009, according to a Kaiser survey. The average deductible is up 255% in just 10 years to $1,077 on average for a covered worker. In tandem with 35-year trends in broad-based wage stagnations, this can leave the average family with medical bills that exceed 10% of annual household income.
"We've seen plenty of companies that offer either financial products or software,” said James Currier, managing partner, NFX Guild, a well-known Silicon Valley-based accelerator. “Finrise is unique because it's both. That allows them to build network effects in a massive sector of the healthcare market. The last few times we saw network effects around financial products were with Square, Venmo, and PayPal.”
Finrise is building tailored solutions to suit both doctors’ and patients’ needs, starting with Vetary.com, which launched exclusively into the $29B veterinary market in early October 2016. With Vetary, veterinarians in select markets can offer financing as an option directly in the doctor’s office and pet owners can apply for a loan using Vetary in less than five minutes. Unlike other lending platforms, once a patient is approved, there’s no waiting for the funds to reach the borrower's bank account or for a separate credit card processor to work through, which is imperative when treatment is dependent on payment.
Finrise Medical Director Dr. Zachary Landman, M.D., who most recently held positions at DoctorBase (acquired by Kareo) and Castlight Health, drives the Finrise purpose across the country: “Healthcare choices shouldn’t be constrained by the patient’s disposable income, but unfortunately that’s the way that most decisions are currently being made in the U.S., particularly around elective services,” said Dr. Landman. “Finrise is mission-critical for doctors because it allows them to concentrate on treating the patient, rather than worrying about how they will pay for the service.”
As Finrise sits at the crucial intersection of financial services and digital healthcare, the company has hired Richard Lewis, a seasoned bank executive that has worked with several fintech startups, to serve as Chief Risk Officer and Head of Capital Markets. “The early investment in bank-level practices and standards at Finrise supports a sustainable lending business and aligns well with Finrise's customer service and transparency objectives. There's a real opportunity to innovate with technology, user experience, and lending product, and to do so in a responsible manner,” said Lewis.
Finrise has purposefully brought together some of the brightest and most recognized financial operators, including Sam Hodges, co-founder of Funding Circle who participated in the fundraising. “Finrise is looking to build a sustainable, long-term business by cultivating a reputation based on trust and transparency,” said Hodges. “Providing access to a transparent payment plan is a great way to help consumers overcome concerns about out-of-pocket costs and help make sure that the patients can gain access to the services they need. It’s a modern, efficient, easy-to-use solution, delivered right at the point of care, and it creates a long-term relationship with the customer for future healthcare needs.”
Finrise is the simplest way to finance treatments and services that are not typically covered by insurance, directly in the doctor’s office. Our mission is to increase the accessibility of quality healthcare, starting with patients of dental, audiology, and veterinary services. The entire process is seamless — with the financing provided in the form of a transparent interest rate loan with multiple term options and immediately available payment. Finrise is headquartered in Burlingame, CA with investment from NFX Guild, Mayfield, Western Technology Investment, and several notable private institutional and individual investors. For more information, please visit https://finrise.com/.