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Chapter, a Greenwich Village startup that helps retirees find and enroll in Medicare plans, raised $50 million in a Series C funding round Tuesday.
The Medicare navigation startup will use the funding to upgrade its data tools, hiring engineers and product experts to develop software that helps match people with affordable health insurance, CEO Cobi Blumenfeld-Gantz told Crain’s.
The funding round was led by the San Francisco-based firm XYZ Venture Capital, with participation from existing investors Narya Capital, Addition, Susa Ventures, and Maverick Ventures.
Chapter was founded in 2020 to help adults over 65 find affordable Medicare plans, including traditional plans, supplemental Medicare and Part D prescription coverage. The company has a team of 50 Medicare advisors that assess plans and help older Americans sign up, earning the Chapter a commission of roughly $350 to $650 per enrollee for some insurance carriers.
The advisors assess every eligible coverage option for enrollees, even if Chapter doesn’t get paid by that plan – part of the company’s mission to ensure customers get the right coverage, Blumenfeld-Gantz said.
Blumenfeld-Gantz came up with the idea for Chapter while he was an employee at Palantir, a data company founded by Peter Thiel. He watched his own parents struggle to enroll in a Medicare plan when working with a small, regional broker that did not have the tools to adequately assess their coverage options – ultimately resulting in major financial and health consequences, he said.
“A lot of the challenges in Medicare are fundamentally data challenges,” Blumenfeld-Gantz said.
The CEO declined to provide the number of Medicare enrollees that have signed up through Chapter, but said the firm has served tens of thousands of older adults since it was founded.
Chapter has raised $111 million to date, collecting $42 million in a Series B round in 2022, according to data from the capital market firm PitchBook. The company was founded by Blumenfeld-Gantz, Corey Metzman and Vivek Ramaswamy.
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Amanda D'Ambrosio , 2024-05-15 22:41:52
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