This installment of Funded in the Alley is presented by Bond Collective. Leading the way in hospitality and luxury office space, Bond Collective designs environments that empower individuals and companies to be the best versions of themselves. We build collaborative workspaces curated around communities, and provide affordable alternatives for modern businesses to call home. Have any questions about what Bond Collective can offer your company? We’d be more than happy to offer you a personalized tour of any of our locations in the Financial District, Flatiron and Brooklyn.
Navigating the environment to purchase health insurance has become a daunting task with pending and recent legislative changes adding further complexities. It’s has been as equally as difficult for brokers and marketplaces to offer the most up-to-date information on all the offerings available while maintaining a cohesive experience for the user. Wellthie has emerged to tackle this problem. A previous graduate of Startup Health, the startup offers a suite of broker and carrier shopping tools so that the process of obtaining health insurance is efficient and accurate for individuals and small businesses. Back in 2015, we named them one of the 30 HealthTech Startups with Real Potential to Change the World and the company’s progress since then is ensuring that shopping for health care insurance will be a seamless experience.
AlleyWatch chatted with Founder and CEO Sally Poblete about the startup and its latest round of funding.
Who were your investors and how much did you raise?
Wellthie raised $5M in a Series A financing. The round was led by IA Capital Group, with participation from Aflac Ventures, other institutional investors, and insurance industry leaders.
Tell us about your product or service.
Wellthie is an insurance technology company that offers leading broker and carrier shopping tools that simplify insurance distribution and optimize insurance choices for small businesses and individuals. Our product is a next-generation e-commerce marketplace for brokers to quote, guide, and enroll small businesses in the cover choices that best service their specific preferences and needs. Like the Zillow of health insurance, Wellthie uses advanced algorithms, best-in-class user experience, and licensed broker support so that brokers using Wellthie can multiply their market opportunity while increasing consumers’ access to health insurance.
What inspired you to start the company?
I spent almost two decades in the healthcare industry, and led product for one of the nation’s largest health insurance carriers. Wellthie was born out of the notion that finding health insurance shouldn’t be headache-inducing, that the shopping process consumers experience can be seamless, modern, and friendly.
As the Zillow of health insurance, Wellthie offers the first and only e-commerce marketplace to find the best value insurance through best-in-class UX and smart decision support. Our team has the unparalleled insurance and technology expertise required to transform the gigantic, 100-year old industry.
Regardless of how regulation unfolds in the coming months, Wellthie provides the much needed navigation, comparison shopping, and support that small businesses and individuals need to make the optimal choices about their health insurance.
What market you are targeting and how big is it?
Small businesses today represent 90% of U.S. enterprises and nearly 5 million small businesses. Wellthie targets the $100B+ small group insurance market, where 55 million small business employees rely on 500K brokers to buy health insurance.
What’s your business model?
Wellthie’s business model is a SaaS licensing revenue model.
NYC is increasingly become the place for insurance-tech. Has there been a defining event that has catapulted this interest?
New York has always been home to many large insurance companies — EmblemHealth, Empire BCBS, MetLife, Guardian, AIG, New York Life, and so many others. It has also been increasingly the center of technology innovation. So, it’s no surprise that there’s lots of insuretech innovation happening here.
What was the funding process like and what challenges did you face?
Like most entrepreneurs say — it takes longer than one would hope. It’s a challenge for an entrepreneur to take time out of growing the business to focus on funding.
What factors about your business led your investors to write the check?
Insurance is a gigantic market ripe for technology innovation, and we have the right team with deep domain expertise and entrepreneurial leadership to seize the opportunity. Our approach to our product is to partner with the insurance stakeholders to modernize and simplify the distribution of insurance to small businesses.
What are the milestones you plan to achieve in the next six months?
Growth in our customers, team, and product offerings.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Regardless of funding stage, it is always useful to be prudent with cash.
Where is your favorite bar in the city for an after work drink?
Our team members always have a suggestion! I’m always game to check out the next hot spot.
This installment of Funded in the Alley is presented by Bond Collective. Leading the way in hospitality and luxury office space, Bond Collective designs environments that empower individuals and companies to be the best versions of themselves. We build collaborative workspaces curated around communities, and provide affordable alternatives for modern businesses to call home. Have any questions about what Bond Collective can offer your company? We’d be more than happy to offer you a personalized tour of any of our locations in the Financial District, Flatiron and Brooklyn.