Lively Secures $27M Series B Funding to Expand Its Modern HSA Platform, Saving Users Over $1M in Healthcare Costs

VCBeat (WeChat ID: vcbeat) has learned that on October 16, 2019, Lively, the creator of modern Health Savings Accounts (HSAs), announced the completion of a $27 million Series B financing round. The round was led by existing investor Costanoa Ventures, with participation from Ally Ventures, Liquid 2 Ventures, PJC, Teamworthy Ventures, Streamlined Ventures, and Y Combinator.

Lively, founded in 2016 in California, USA, is a modern Health Savings Account (HSA) platform designed for business administrators and individual users. Centered on user needs, Lively delivers solutions that provide an intuitive user experience. The company aims to help Americans better afford healthcare costs at every life stage, enabling individuals and families to lead stable, happy, and healthy lives.

Lively offers Visa-backed debit card processing, features industry-leading iOS and Android apps, enables investing through TD Ameritrade, provides comprehensive tracking of eligible medical expenses, and charges no personal or family fees. This suite of initiatives challenges traditional HSA platforms and significantly enhances the consumer experience.

The proceeds from this round of financing will further drive the development of Lively’s HSA platform, enabling it to encompass all the health and financial tools consumers need to make informed healthcare decisions. Through continued investment in technology, expansion of consumer-facing product offerings, and ongoing enhancements in healthcare services, payments, and customer support, Lively will make medical savings and spending more personalized and modern.

“Healthcare remains the leading cause of debt for Americans,” said Alex Cyriac, CEO and co-founder of Lively. “We are committed to creating a better financial future by revolutionizing healthcare savings plans. HSAs are the premier savings vehicle, and we are thrilled to leverage this funding to expand our product offerings and enhance their quality, ensuring that employers have the most robust options available.”

Mark Selcow, a partner at Costanoa Ventures, stated, “We are thrilled to see Lively not only become the fastest-growing HSA provider in the market but also emerge as consumers’ top choice. We are delighted to provide further support for their next phase of growth. This is just the beginning, and we believe this funding will help them achieve their revolutionary mission in healthcare savings.”

Since its launch in 2019, Lively has been recognized as one of Morningstar’s top Health Savings Account (HSA) providers. Compared to other companies’ HSA platforms, Lively has saved consumers more than $1 million in medical expenses. There is substantial demand for its services among individuals, families, and businesses across the United States. Projections indicate that by the end of 2021, HSA assets held in approximately 30 million accounts will approach $88 billion, reflecting unprecedented public demand for modern HSA solutions.

Costanoa Ventures, founded in 2012 and headquartered in Silicon Valley, USA, focuses on investing in early-stage companies, primarily in SaaS infrastructure and markets.

Ally Ventures is the investment arm of Ally, focusing on investing in strategic startups to enhance or diversify the company’s core capabilities. The firm’s primary objective is to maintain its position as a leading digital financial services company over the long term.

Liquid 2 Ventures was founded in California, USA, in 2015, providing seed-stage investment to technology startups.

PJC, founded in 2001, is an early-stage venture capital firm based in Boston. The company focuses on investments in software and technology-enabled services. PJC typically invests $5 million to $30 million in Series A financing rounds and reserves additional capital for subsequent funding rounds.

Streamlined Ventures, established in 2013, is a firm specializing in investment and financing within the fields of applied artificial intelligence, data science, quantum computing, blockchain, AR/VR, and robotics.

Y Combinator was founded in 2005. The company developed a new funding model, investing small amounts of capital in a large number of startups twice a year.

(Compiled by Jiang Ying)