Total amount raised
$472 Millions
Latest funding date
Location
PayZen has successfully raised funds through multiple rounds, with the latest being a debt financing round closed on August 13, 2024. The company is backed by 11 investors, including notable names like Viola Credit and New Enterprise Associates.
PayZen's platform leverages AI and machine learning to offer innovative patient financing solutions, aiming to increase patient payments and satisfaction. Keep reading to explore the intricacies of PayZen's fundraising journey and the investors backing this healthcare fintech startup.
What Is PayZen?
PayZen, founded in July 2019, is a healthcare fintech startup based in San Francisco, California. The company was co-founded by Ariel Rosenthal, Itzik Cohen, and Tobias Mezger.
Operating within the financial services, fintech, healthcare, payments, and software industries, PayZen employs between 51 and 100 people. The company focuses on addressing healthcare affordability through AI-powered patient financing solutions, aiming to improve financial outcomes for both patients and medical providers.
How Much Funding Has PayZen Raised?
- Seed Round
- Amount Raised: $5M
- Date: February 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of their AI-powered patient financing platform.
- Series A
- Amount Raised: $15M
- Date: November 2021
- Lead Investors: SignalFire
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their market reach and enhance their technology.
- Series B
- Amount Raised: $20M
- Date: November 2022
- Lead Investors: 7wire Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and market expansion.
- Debt Financing
- Amount Raised: $200M
- Date: November 2022
- Lead Investors: Viola Credit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their fintech platform and expand their development center in Israel.
- Series B
- Amount Raised: $32M
- Date: August 2024
- Lead Investors: New Enterprise Associates
- Valuation at Round: Over $200M
- Motivation Behind the Round: To grow their "care now, pay later" product and improve technology integration.
- Debt Financing
- Amount Raised: $200M
- Date: August 2024
- Lead Investors: Viola Credit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the expansion of their patient financing solutions.
Total Amount Raised: $472M. Current Valuation: Over $200M.
Key Investors
- New Enterprise Associates (NEA)
- Details: NEA is a global venture capital firm that invests in technology and healthcare companies at all stages of growth. They have a strong presence in both the U.S. and international markets.
- Investment Focus Areas: Technology, Healthcare
- Notable Investments: Coursera, Robinhood, 23andMe
- Viola Credit
- Details: Viola Credit is part of the Viola Group, providing credit solutions to technology companies. They focus on offering flexible financing options to support growth-stage companies.
- Investment Focus Areas: Credit solutions for technology companies, Growth-stage technology companies
- Notable Investments: SimilarWeb, ironSource, Payoneer
- 7wire Ventures
- Details: 7wire Ventures is a venture capital firm that focuses on investing in early and growth-stage companies in the healthcare sector. They aim to transform healthcare through innovative solutions.
- Investment Focus Areas: Healthcare, Digital health, Health IT
- Notable Investments: Livongo, Bright Health, NOCD
- SignalFire
- Details: SignalFire is a venture capital firm that uses data-driven strategies to invest in early-stage technology companies. They leverage proprietary technology to identify and support high-potential startups.
- Investment Focus Areas: Technology, Data-driven investments
- Notable Investments: Grammarly, Ro, Frame.io
- Viola Ventures
- Details: Viola Ventures is an Israeli venture capital firm that invests in early-stage technology companies. They are part of the larger Viola Group, which includes Viola Credit.
- Investment Focus Areas: Technology, Fintech, Healthcare, Enterprise software
- Notable Investments: Outbrain, Payoneer, Redis Labs
What's Next for PayZen?
PayZen stands at the cusp of significant growth opportunities, driven by its innovative "care now, pay later" product. With the U.S. healthcare market's vast potential, the company aims to expand its reach to more healthcare providers and introduce new products like the pre-care card. Leveraging AI to assess patient eligibility for financial assistance, PayZen is well-positioned to address the rising medical debt crisis.
Future fundraising opportunities appear promising, given the company's strong growth metrics and market potential. PayZen's recent successful funding rounds suggest that additional equity rounds or expanded credit facilities could be on the horizon. However, the company may face challenges such as convincing more healthcare providers to adopt its model and navigating the complex regulatory landscape of the healthcare industry.
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