NYC-based Level, which helps companies offer customized employee benefits plans and touts the ability to process claims in four hours, raises $27M Series A — Level, a startup that aims to give companies a more flexible way to offer benefits to employees, has raised $27 million in a Series.
The Level Group raises $27 million from Khosla and Lightspeed in order to rebuild insurance from scratch
Khosla Ventures and Lightspeed Venture Partners have completed a $27 million Series A round of funding for Level, a startup focused on providing companies with a more flexible way to offer benefits to their employees. This round was led by Khosla Ventures and Lightspeed Venture Partners.
Operator Collective, as well as leading angel investors, including First Round Capital and Homebrew, also participated in the financing, along with previous investors First Round Capital and Homebrew. It is reported that the round was raised at a valuation of “nine figures,” but there was no further information provided by the company regarding that valuation.
Founded in 2018, Level, a New York City-based company, is assisting employers and employees in taking advantage of their benefit dollars to their full potential by leveraging flexible networks and real-time claims to reconstruct insurance from the ground up.
It is possible for employers to customize their plans so that they can cover all treatments 100%, including prescription drugs. A major selling point of the company is its ability to process claims within four hours of receiving them.
Founder and CEO of Square, Paul Aaron, also served as the network team leader at Oscar Health and is the inventor of several patents in the payments space. Aaron was one of the first employees at Square, led the network team at Oscar Health and was one of the first employees at Square.
In the summer of 2019, Level announced the first employer-sponsored dental benefits, and it began serving its first beta customers in the fall of that same year. As of now, the company also offers vision insurance plans as well. It has over 10,000 members from companies like Intercom, Udemy, KeepTruckin, and Thistle that have paid for care through its platform. These members come from a wide range of companies.
A lot of people find it difficult to understand insurance, and it often feels unfair to them. There are a lot of restrictions on where you can go, billing takes weeks, and there is always a feeling that you owe more than you should,” Aaron said. As far as we are concerned, paying with insurance should be as easy as paying with any other form of payment.
As a full-stack provider, Level says that it is building end-to-end tools, from automated underwriting to real-time benefit analytics, to meet the needs of its clients.
There are plans for a new insurance product to be launched by the company that is aimed at “helping smaller businesses offer bigger benefits” that are typically only available to enterprises. As well as helping employers get money back for any unused benefits after paying a fixed amount each month, the company aims to help them get money back for any unused benefits. The ultimate goal is to be able to offer all these products to companies of any size – whether they have two employees or 20,000 – so they can be able to offer better employee benefits for their teams.