- Modern benefits brokerage enables employers of all sizes to access Fortune 500 employee benefits while reducing costs by up to 20%
- Since year-end 2020, company has increased annual recurring revenue by 224% and more than doubled its number of customers
Nava Benefits today announced the completion of a $40 million Series B funding round led by Thrive Capital, with participation from existing investors Avid Ventures, Quiet Capital, and Sound Ventures. New investors GV, K5 Ventures, and Homebrew also participated, alongside One Medical Founder, Tom Lee; the former CBRE Global Chief Financial Officer, Jim Groch; and Maven Clinic’s VP of Sales, Isha Vij. The infusion of capital will be used to accelerate Nava’s efforts to bring the benefits playbook of Fortune 500 companies downstream to SMBs, improving healthcare literacy support for the employee while driving down costs for the employer.
The Covid-19 pandemic, political strife, and economic turmoil have exposed cracks in an already fragile American healthcare system. From a shortage of qualified mental healthcare professionals to restricted access around gender-confirming care and reproductive care, many Americans are struggling to access high-quality and affordable healthcare. But while Fortune 500s have the resources to fill the care gap and offer new benefits, SMBs do not have the same support due to cost and resource constraints. Moreover, small and medium-sized businesses saw cost-per-employee increases of 9.6% in 2021, as compared to 5% for larger companies. Nava’s technology and consulting offering level the playing field by reducing costs and exposing employers and employees at SMBs to a wide array of modern benefits, including primary care, mental health, fertility and adoption assistance, and a host of other offerings.
“Health insurance is a massive, $3T market. But while there’s been an explosion of innovation happening in the space, very little of it reaches the average American employee,” stated Kareem Zaki, co-founder of Nava and general partner at Thrive Capital. “It’s shocking that in the year 2022 healthcare is still so fractured in America. Nava is working to bring Fortune 500-level benefits to all businesses and their employees.”
Nava also equips employers and their teams to become smarter healthcare buyers. Research by Carnegie Mellon found that without guidance, the majority of employees in their study chose plans that “resulted in excess spending equivalent to 24% of chosen plan premiums.” Nava’s technology, combined with its brokerage and service teams, help employees select plans that meet their specific needs while also reducing unnecessary costs. Additionally, Nava ensures that employees get the most out of their benefits packages by helping them understand their plan options, book appointments, interpret their claims, and resolve billing issues. Together, these offerings boost ROI on employer healthcare spend while also increasing the level of engagement that employees have with their health plans.
“Nava took our benefits to a new level,” said Michele Perry, Director of Human Resources at American Assets Trust. “Through their support, we were able to keep our healthcare costs flat in a year marked by large renewal increases for other SMBs, and they have continued to provide that unparalleled level of service year-round. Nava’s client support team has proactively reduced our administrative burden, so we can focus on what really matters: our employees. Since implementing Nava’s suite of innovative tools, our employees have been happier and more engaged, and our benefits have enabled us to stay competitive in a tight labor market.”
The closing of Nava’s Series B round is the latest milestone in the company’s growth path. In March, the company launched its Nava Benefits Search Engine, enabling all employers to search for unfiltered information and transparent pricing from more than 600 providers across 28 benefit categories such as fertility services, tuition assistance, and mindfulness and wellness. Nava continues to evolve its technology offering and further deepen its base of knowledge and experience with multiple strategic hires.
“The stakes have never been higher when it comes to employee health and benefits: costs are spiraling and employees are overwhelmed” said Brandon Weber, Nava Co-Founder and CEO. “Since day one we’ve been committed to leveling the playing field for SMB employers and their people by giving them access to the same benefits, tools, and member support enjoyed by the Fortune 500, and our progress to date is proof that the approach is working. Our large market renewal trend is one third of the national average. We look forward to scaling our approach and reaching more Americans to provide them with better health education and benefits.”
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