NEWS: Health and Wellness Rewards Startup Opens Series A Round, Seeking $5 Million
A startup that created a rewards program as an incentive for people to be proactive about their health has opened a Series A round, with a goal of $5 million.
This company has partnered with US Capital Global for the raise.
The announcement was made recently by Carepoynt, with HQ in Newport Beach, in a press release. It’s coming off a strong second quarter, with “exponential growth across all key performance indicators,” according to the release.
It more than doubled its customer base of partners and members in its “Carepoynt Community” since it launched a year ago.
The Series A raise follows Carepoynt’s oversubscribed seed round of about $2 million, which included Tech Coast Angels members. TCA is the leading source of funding to early-stage companies in SoCal and the second-most active angel investor network in the U.S. in terms of funded deals
The company plans to use the Series A funds for continued development of its platform, to grow and monetize its member base and to “significantly” scale its community of providers, partners, employers and payers.
The private company doesn’t disclose revenue.
How It Works
Carepoynt built a cloud-based platform where members can connect with each other, as well as with healthcare providers.
It serves several demographics: consumers, providers, employers, insurance companies and brokers, as well as the company’s strategic partners.
Individual users can create personal health plans and wellness goals and track their progress. They’re rewarded for following the plans, completing health screenings and making health-conscious purchases from Carepoynt’s website and app.
Strategic partners like Target – as well as several Orange County-based wellness businesses – use the platform to encourage users to earn, redeem and share “poynts.”
These poynts can be pooled and shared with users’ friends and family, known as “care cliques.” They can also be donated to charitable organizations through “Share the Care.”
Services and transactions issue poynts. Carepoynt makes money during the conversion from dollars to poynts” and from poynts to gift cards. It’s a proprietary conversion rate that’s dependent on the agreement with each partner.
The company also makes money through users’ purchases of products and services from Carepoynt’s strategic partners.
Carepoynt reported the following recent milestones:
- Growth in the Carepoynt member base to nearly 20,000-plus, with members in all 50 states
- Increased Carepoynt member transactions by more than 40% to nearly 70,000-plus
- Doubled business development by growing the Carepoynt Community of earn and/or redeem partners to approximately 500-plus national, local and online options
- Launched the Carepoynt mobile app on both the Apple store and Google Play
- Established new strategic ‘go-to-market’ partnerships with key players
- Completed design, initial development and launch of several new platform features including the Carepoynt Connect API, Carepoynt Rewards for employers and a new Carepoynt Pryme beta program now in testing
The company plans to launch Carepoynt Rewards for employers and payers. This has the intended goal of encouraging and enabling more awareness, engagement and value from users’ healthcare and wellness experiences, as well as helping better manage healthcare costs for the multiple stakeholders that play a part in the “costly and chaotic healthcare marketplace.”
Carepoynt also plans to start testing early releases of some of its new Carepoynt Pryme beta program features with select members and partners in its community over the remainder of the year. This will include several new features and rewards, as well as a new user experience and interface design for members and partners.
Team, Advisory Board and Partners
Tim Stanley is Carepoynt’s CEO. Its team and advisory board members have ties to leading healthcare and other businesses like Aetna, Kaiser and Salesforce.
National partners include Fitbit, CVS and Amazon.