A local venture capital firm participated in an $8.7 million funding round for a healthcare-focused fintech company.
Grand Rapids-based Grand Ventures was one of many recent investors to back MedZERO, a platform that provides employees with on-demand access to funds to pay for out-of-pocket healthcare expenses.
According to the company, the decision to invest came from MedZERO’s position as a solution for medical debt, which affects millions of Americans. Grand Ventures also cited customer testimonials and MedZERO’s outstanding team as key factors in its investment.
“With our growing focus on financial technology and digital health, we are extremely excited to work alongside MedZERO as they continue to grow and redefine what medical debt means for the average American,” said the society.
Tim Streit, general partner of Grand Ventures, led the transaction. The company’s newest team member, investment analyst Nick Cohn, introduced MedZERO to the company.
According to a Consumer Financial Protection Bureau report earlier this year, more than $88 billion in medical debt is held on credit cards, with 61% of Americans with medical debt having employer-provided health insurance.
MedZERO is positioned to help employees provide instant approval with no credit check or impact, allowing employees to pay for medical care on the spot and reimburse via payroll with no interest or fees.
Grand Ventures joins Silicon Valley-based companies and existing MedZERO investors True Ventures and Village Global in this round participation. The startup has additional super angels who also serve as advisors.
At press time, MedZERO co-founder and CEO Craig Froude said the seed funding round is still open to new investors.
The platform was founded in Portland, Oregon, and raised its first round of capital in 2021.