HealthJoy, the Chicago healthcare startup, has raised $12.5 million in venture funding.
According to a report citing the company, the Series B round of fundraising was led by U.S. Venture Partners. U.S. Venture Partners’ Jonathan Root will join the board of the healthcare-focused startup. Other investors who participated in the fundraising round included Epic Ventures, Chicago Ventures, Sidekick Ventures, and the startup’s co-founders. The company had previously raised $3 million in a Series A round.
The proceeds from the round of fundraising will go to increase its staff to 250 during the course of the next ten months. HealthJoy uses artificial intelligence to answer medical questions and manage healthcare costs and services. It has around 200,000 users and lodged growth of 650 percent in 2018, noted the report. This year it expected growth of about 250 percent, noted reports.
HealthJoy app lets users manage all aspects of healthcare costs, whether it’s claims, deductibles, health savings accounts, or prescription medicine. It also recommends services to its users.
The company is operating in a crowded marketplace with other startups focused on helping consumers with their healthcare benefits and costs. Some of those included League, Lumity, Lyra Health, and Spring Health, noted the report. HealthJoy, however, views those as potential partners, telling reporters it’s competing against a lack of utilization of single point healthcare solutions. By having a bunch of solutions on one platform it is aiming to boost utilization.
HealthJoy isn’t the only one trying to overhaul the healthcare industry. Amazon.com has long been rumored to be entering the marketplace with rumors swirling about different ways it will do so. Case in point: late last month The Wall Street Journal reported Amazon wants to reimagine health insurance, while another focus is on using artificial intelligence to enhance diagnosis and to improve the experience of patients, among other things.