StretchDollar has raised $6 million in seed funding to revolutionize health benefits for small businesses.
The funding was led by Fika Ventures and Oscar Health, with contributions from Precursor Ventures and Springbank. This latest round builds on the company's previous $1.8 million pre-seed funding secured last fall.
Founded in 2023, StretchDollar aims to simplify the process of managing health benefits for small businesses. The startup has developed a self-service platform that allows employers to set up custom health benefits in just 10 minutes, free of charge. This approach saves time and empowers employees by providing pre-tax funding for individual insurance plans.
Marshall Darr, CEO and co-founder of StretchDollar, highlighted the frustrations small business owners face with health benefits management. The traditional process can be overwhelming and time-consuming. StretchDollar's platform alleviates this burden and provides employees with more choice and flexibility.
The startup leverages the IRS's recent introduction of Individual Coverage Health Reimbursement Arrangements (ICHRA) to simplify the process and address rising insurance costs. StretchDollar is collaborating with Oscar Health and other carriers to improve access to affordable health insurance for underserved small businesses.
Fika Ventures expressed enthusiasm for StretchDollar's mission and its potential to transform a cumbersome process into an efficient solution. With healthcare costs increasing, innovative approaches to employee benefits are crucial. StretchDollar's focus on the underserved small business segment positions it well in the evolving ICHRA market.
Technology plays a vital role in simplifying complex healthcare processes, and StretchDollar's commitment to enhancing the small business benefits experience reflects this trend. The startup's user-friendly platforms and strategic partnerships are poised to make a meaningful impact on how small businesses manage health benefits.