SimplyInsured, a San Francisco, CA-based provider of an online platform to purchase small business health insurance, closed a $750K angel funding round.
Backers included Y Combinator, Altair Capital, Jake Gibson & Tim Chen (the founders of NerdWallet.com), Waseem Daher, Jeff Arnold, Amee and Adil Chaudry, Sam Melamed, and Matt Huang.
The company intends to use the funds to grow its product and sales team.
Traditional insurance brokerages, a $17 billion industry, still rely on older quoting tools and inefficient fax-based applications, creating an inefficient, and frustrating experience for small business owners. Over 6 million small businesses purchase health insurance via paper, phone, and fax systems, as well. To overcome this, SimplyInsured brings the insurance buying process online, allowing clients to save up to $1000 per employee in healthcare premiums without sacrificing coverage.
By visiting the platform, small businesses can compare price quotes from multiple insurance carriers and choose the one that fits their needs. SimplyInsured’s technology reads any health insurance plan and convert the plan into a cost model, turning complex legalese into cost comparisons, eliminating days for a response from a broker.
It also turns the application process into an online process, automating all health insurance administration – including employee onboarding, payroll deductions, and other back office tasks.
Launched as part of the Y-Combinator startup accelerator by Vivek Shah, CEO, and Bob Aspell, SimplyInsured has grown revenue by 500% in the last 6 months.