FlexMinder, a Seattle-based company that aims to aggregates and automates the reimbursement process for healthcare flexible spending accounts, has closed its Series AA round with $1.4 million from WRF Capital, Founder’s Co-op, and unnamed angel investors.
FlexMinder, a fast-growing Seattle startup that aggregates and automates the reimbursement process for healthcare flexible spending accounts (FSAs), announces the close of Series AA financing with a $1.4 million total investment from WRF Capital, Founder’s Co-op and other prominent angel investors. The targeted amount of $600,000 was oversubscribed, signaling high investor interest in the startup.
“FlexMinder is exactly the kind of company we love to back — the founders combine deep domain expertise with a passion for solving hard business problems with software and a customer-oriented sales approach that just blows people away. There’s a huge opportunity here and FlexMinder is already the clear leader,” said Chris DeVore, general partner of Founder’s Co-op.
The market potential for FlexMinder users is over 150 Million FSA eligible consumers. It currently has commitments from Third Party Administrators with more than 260,000 participants, and the number is growing.
The funding will allow FlexMinder to complete functionality focused on increasing revenue, scale operations and broaden its national footprint in this underserved sector. Recently FlexMinder hired five new employees focused on product, development, sales and marketing, and client services to meet current and anticipated demand.
“The response from our customers has been overwhelming,” said Lowell Ricklefs, CEO of FlexMinder. “We get immediate CEO attention because our digitizing of their manual paper healthcare processes reduces their costs by up to 50 percent. And their customers’ satisfaction drives more revenue.”
FlexMinder is an Enterprise SaaS company that aggregates an individual’s healthcare information from multiple sources and automates the reimbursement process for their FSA healthcare claims. Consumers can view all of their healthcare related claim information through a single portal.
“We were impressed with the way FlexMinder greatly reduces the hassle factor for FSA holders and helps streamline insurance claim processing for Third Party Administrators. FSAs are just the first of several addressable markets and we look forward to watching the company grow,” Loretta Little, managing director of WRF Capital.
FSA’s allow employees to save money by putting pretax (up to 40% tax savings – FICA, State and Federal) dollars (up to $2,500 for healthcare and $5,000 for childcare) aside to be spent on qualified items such as child care, insurance deductibles, co-pays at the doctor, prescription drugs, eyeglasses, orthodontic braces and even Band-Aids and contact lens solutions.
For third-party administrators (TPAs), FlexMinder automates the reimbursement process for healthcare flexible spending accounts (FSAs), providing many direct benefits including:
• Cutting claim handling costs by as much as half
• Eliminating submission errors
• Increasing participation rates
• Raising profitability
FlexMinder also has an online store that sells the 38,000 items that qualify for pre-tax spending – providing an easy way for consumers to spend their FSA dollars and providing a new revenue stream for TPA’s
Ricklefs added that once companies understand the FlexMinder process and they see the resulting cost reductions, they “put the pressure back on us to get integrated as quickly as possible.”
About FlexMinder, Inc.
Launched in 2011, Seattle-based FlexMinder delivers Software as a Service (SaaS) that saves consumers time and money while reducing costs for TPAs, private health exchanges and health carriers. FlexMinder is an Enterprise SaaS company that aggregates an individual’s healthcare information from multiple sources and automates the reimbursement process for their healthcare FSA claims. Consumers can view all of their healthcare-related claim information through a single portal. The company, a TechStars 2011 graduate, is growing rapidly through its focus on the B2B market. For more information, visit www.flexminder.com. Join us on Facebook and Twitter.