Chapter, a Medicare navigation platform, announced on Thursday that it raised $100 million in Series E funding.
The New York-based company’s AI platform compares health plans from every insurance carrier, including Humana, UnitedHealthcare and Cigna. Seniors using the platform can either talk to a Chapter Medicare advisor to help choose a plan or explore plans on their own. It also offers a provider directory and prescription cost calculator for Medicare.
“We are trying to solve one of the most significant problems in healthcare today: the fact that millions of American seniors are on the wrong Medicare coverage for their specific needs,” said Cobi Blumenfeld-Gantz, CEO of Chapter. “They are either overpaying for coverage they could receive for far less, or they are underinsured and face serious obstacles to care when they get sick. This mismatch leads to $100 billion of deadweight loss to the system every single year.”
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Chapter’s Series E round was led by Generation Investment Management, with participation from Fifth Down Capital, 8VC, Stripes, XYZ Venture Capital, Addition, Narya Capital, Susa Ventures and Maverick Ventures.
“Cobi and his team have earned the trust of American seniors by building a data and AI platform that provides accurate information and impartial advice in an industry largely devoid of either,” said Anthony Woolf, partner at Generation Investment Management, in a statement. “They have rapidly become the premier option for Medicare plan selection and utilization. As our society is gradually transformed by artificial intelligence, Chapter is uniquely positioned to ensure that advances in technology serve the needs of seniors.”
The funding brings Chapter’s valuation to $3 billion, and it has raised $285 million in total. Its valuation has more than doubled since its last funding round less than a year ago, the announcement said.
With the funding, the company is moving beyond Medicare to create additional products that improve the lives of retirees, according to Blumenfeld-Gantz. When asked about the company’s exit plan, he said that isn’t what the company is thinking about right now.
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In the past year, the company tripled its revenue and exceeded $100 million in Annual Recurring Revenue, according to the announcement.
Ultimately, the company aims to help seniors live the best “chapter of their lives” in retirement, Blumenfeld-Gantz said.
“American seniors control a majority of the country’s wealth but their needs are not prioritized today,” he stated. “We aim to change that by building trust and launching products that solve real problems.”
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