Carepoynt, a Newport Beach, California-based startup offering an incentive-based health platform, is receiving a $5 million preferred equity investment from an unnamed source, according to a recent announcement from US Capital Global, which is acting as the deal’s exclusive financial advisor.
Charles Towle, managing partner at US Capital Global, said that the healthcare rewards company sought the capital “for platform expansion, for sales and marketing growth, and for additional working capital to support business operations.”
The platform works by first letting customers set up a free account. They can then earn points for participating in positive health behaviors like going to the doctors or the gym. It also gives people points for buying things at certain retail stores that focus on health and going to the spa, according to the company’s webpage. The platform also links patients up with care providers, payers, and employers.
Why it matters
With $2 million raised just a few months ago, this new funding suggests that Carepoynt’s incentive-based approach to member health has earned some admirers. Additionally, any improvements this funding may bring to the platform will be felt by Carepoynt’s existing healthcare partners (Aetna, Kaiser, and Cedars Sinai) and retail partners (Fitbit, CVS pharmacy, and Starbucks).
What’s the trend
Thanks in part to a growing body of research, healthy behavior incentives and renumeration is becoming an increasingly common approach for employers and insurers. As such, more startups targeting the space are cropping up such as Sempre Health, a San Francisco-based company that also employs monetary incentives that raised $8 million in late August.
On the record
“With nearly 20,000 nationwide members and hundreds of healthcare, wellness, and other local and online partners on the platform as part of the Carepoynt community, we’re delighted to be working with US Capital Global’s skilled advisory team as we build momentum and move forward with our growth plans to make healthcare more rewarding for all,” Carepoynt CEO and cofounder Tim Stanley said in a statement.