Lynx, a fintech platform for healthcare payments, has raised $27 million in Series A funding to scale its operations, the company recently announced.
Boston-based Lynx works with health plans, digital health companies, providers, benefit companies and others to embed healthcare financial services into their platforms. Customers are able to launch new banking and payment programs, including consumer-directed health accounts like health savings accounts. They can also issue cards that can be used for supplemental benefits, as well as set up an e-commerce experience with an assortment of health products. In addition, it helps companies administer ICHRA plans.
The Series A round was led by Flare Capital Partners and included participation from CVS Health Ventures, McKesson Ventures, .406 Ventures, Obvious Ventures and Frist Cressey Ventures. In total, Lynx has raised more than $44 million.
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Flare Capital Partners has been tracking Lynx for some time now, said Victor Lanio, partner at the healthcare investment firm. Lanio will be joining Lynx’s board and said the startup simplifies healthcare payments for health companies.
“Some of our largest health plan partners will have Medicare and commercial lives, so they might have to work with different vendors in a high deductible HSA context, versus Medicare supplemental benefits program,” Lanio said in an interview. “And they may not even yet have an ICHRA strategy, but a lot of them have been thinking about it and developing strategies around ICHRA. So what Lynx offers is a chance to have one platform that sits underneath each of those.”
The financing will help the company grow to ensure it is “meeting the needs of the largest health plans and financial institutions in the space,” according to Matthew Renfro, co-founder and CEO of Lynx. The company recently hired a chief growth officer and is building out its marketing team.
Ultimately, Lynx aims to support the connection between healthcare and finance, Renfro stated.
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“A core thesis of why we started the company is how interconnected health and finance is for people,” he said in an interview. “Generally speaking, if you’re a higher earner, the data would show you’re in a better position to make better healthcare decisions. If you make less money, you’re not necessarily in a position to worry about doing your preventative visit if you’re trying to afford a meal. And we’re really from a vision perspective focused on how we can close that gap between health and finance.”
Other healthcare fintech companies include Cedar, Bend Financial and NationsBenefits.
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