Lively Raises $80 Million Series C to Make HSAs the Next 401(k)
Fastest growing HSA expands offerings to top financial institutions and employers
SAN FRANCISCO–(BUSINESS WIRE)–#HSA—Lively, Inc., creators of the modern health savings account (HSA), today announces an $80 million Series C round led by B Capital Group, with participation from Telstra Ventures and existing investor, Costanoa Ventures. This brings the company’s total funding to more than $120 million to accelerate its mission of helping millions of Americans save for healthcare and retirement.
Over the last year, Lively has experienced exponential growth through all facets of its business, paving the way for the future of health savings accounts. Within the last four months alone, the company has partnered with BMO Harris (NYSE: BMO), received an IRS Non-Bank Trustee designation, and surpassed $500 million in HSA assets. This momentum, paired with the latest round of funding, cements Lively’s position as the fastest-growing HSA provider and reaffirms its leading approach.
“We are growing 4x faster than legacy incumbents and will cross $1B in assets early next year, becoming the fastest HSA provider to do so, ever,” said Alex Cyriac, CEO and co-founder of Lively. “This newest round of funding enables us to continue on our mission to help Americans prepare for the rising cost of healthcare both today and into the future.”
As Americans struggle to save due to rising healthcare costs and the aftermath of the pandemic, this marks a pivotal moment for HSA adoption. According to Devenir, HSA assets have doubled in the last three years to $82.2 billion held in over 30 million accounts, despite how unusual 2020 was for consumers and health spending. There’s never been a more critical time to put better, more consumer-friendly tools in their triple-tax advantaged toolbox.
“Lively’s product is what the modern healthcare experience should be, and their approach represents the future of the HSA,” said Robert Mittendorff MD, General Partner at B Capital Group. “Their commitment to a customer-centric strategy, combined with Alex Cyriac’s vision for the evolution of the HSA, make Lively the perfect fit for our portfolio of innovative healthcare companies.”
The additional infusion of capital will allow Lively to further invest in its industry-leading consumer-centric platform and foster more relationships with America’s top financial institutions. It will expand Lively’s offerings to encompass all of the healthcare and financial tools Americans need to maximize their finances and overall livelihood. Lively will continue to offer a personalized and modernized version of healthcare spending with tailored customer service and unique partnerships not found anywhere else in the industry.
Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial setup to providing dedicated, ongoing support and education for every step, to help each HSA reach its maximum potential with minimal headache. Lively is headquartered in San Francisco, CA, with additional offices in Boise, ID. For more information, please visit livelyme.com or follow us on Twitter (@LivelyHSA).
About B Capital Group
B Capital Group is a multi-stage, international investment firm founded in 2015 by Raj Ganguly, Eduardo Saverin, Howard Morgan, and Kabir Narang. B Capital invests in companies transforming large traditional industries across borders and geographies. Leveraging a global team of seasoned experts and a strategic partnership with BCG, B Capital helps founders navigate business challenges, raise capital, and attract talented leadership at every stage of the startup lifecycle. B Capital invests in enterprise technology (e.g., consumer enablement technologies, enterprise application software, infrastructure, security, AI/ML), fintech and insurtech, industrial and transportation, and healthcare tech and Bio IT. The B Capital portfolio includes global, industry-leading companies like Aetion, Atomwise, Bounce, Centivo, Carro, Dailyhunt, DataRobot, Evidation Health, FalconX, Icertis, Innovaccer, Kopi Kenangan, Ninja Van, Notable Labs, Payfazz, Synack, Ula, YaloChat, and XingYun. For more information, visit http://www.bcapgroup.com/.