Why We Invested in medZERO
We’re thrilled to announce our newest investment in medZERO, a platform providing employees with on-demand access to funds to pay out-of-pocket healthcare expenses at zero interest and with zero fees. Grand Ventures invested in medZERO’s $8.7M seed round alongside True Ventures, Village Global, and a few super angels who also serve as advisors.
While we could list off a myriad of reasons why we’re so excited about medZERO, we’ll stick to the top three.
Healthcare Debt is Debilitating and We Need a Solution
Today, millions of Americans carry medical debt. A report from the Consumer Financial Protection Bureau estimates over $88 billion of medical debt is held on credit cards, and 61% of the Americans who carry medical debt have employer-provided health insurance. And as more Americans enroll in high-deductible health plans, the burden of out-of-pocket costs rises in tandem.
By integrating with employers, medZERO is uniquely positioned to support employees as they face rising medical expenses. Employees receive instant approval with no credit check or impact, allowing employees to pay for medical care on the spot and easily repay via payroll deductions with zero fees and zero interest. As a qualified medical expense, medZERO will route payments through an employee’s HSA (if applicable) providing a cash savings up to 30% by using pre-tax dollars.
Customer Testimonials
Our favorite component of the due diligence process involves talking with customers and understanding what makes the company and product unique. In this case, employers expounded on the opportunity to provide robust benefits to all of their employees. One employee shared their personal experience faced with a medical bill and without the means to pay for it. Within minutes of enrolling in the medZERO benefit, that employee received the required funds to pay for their medical expenses. medZERO provides a timely and meaningful resource, exponentially contributing to the health and wellness of employees.
Exceptional Team
We couldn’t be more excited to support Craig Froude and Howard Michalski as they utilize their deep industry expertise and leadership to create a healthier future for Americans. As Craig and Howard answered our repeated questions throughout the diligence process, their passion and drive for providing healthcare solutions was clearly evident. We are excited to join them as they change the landscape of healthcare payments.
Looking Ahead
With our increasing focus on FinTech and Digital Health, we’re incredibly excited to work alongside medZERO as they continue to grow and redefine what medical debt means to the average American.
While General Partner Tim Streit led the deal, we are especially grateful to our newest team member, Nick Cohn, for introducing us to medZERO. Nick, we’re so glad you’ve joined the team!
P.S. If you’re a seed-stage FinTech or Digital Health company or a venture capitalist investing in the space, we would love to hear from you!
