Total amount raised
$472 Million
Latest funding date
08/01/2024
Location
PayZen has successfully raised funds through seven rounds, with the latest being a Debt Financing round led by Viola Credit. The company is backed by a total of 11 investors, including notable names like Viola Credit and New Enterprise Associates.
PayZen's platform leverages advanced AI technology to offer patient financing solutions, aiming to make healthcare more affordable. Keep reading to explore the intricacies of PayZen's fundraising journey and the investors backing this innovative platform.
What Is PayZen?
PayZen is a healthcare fintech startup based in San Francisco, California. The company focuses on making healthcare more affordable through the use of financial technology, artificial intelligence, and machine learning. It operates in multiple industries, including AI, financial services, fintech, payments, and software.
Founded with the mission to increase patient payments and satisfaction, PayZen offers AI-powered patient financing solutions. The company has a workforce of 101-250 employees and is trusted by various healthcare providers for its seamless integration and intelligent payment options.
How Much Funding Has PayZen Raised?
- Seed Round
- Amount Raised: USD 5,000,000
- Date: February 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of their AI-powered patient financing platform.
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: August 2019
- Lead Investors: Viola Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company and build the foundational technology.
- Series A
- Amount Raised: USD 15,000,000
- Date: November 2021
- Lead Investors: SignalFire
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
- Series B
- Amount Raised: USD 20,000,000
- Date: November 2022
- Lead Investors: 7wire Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market penetration.
- Debt Financing
- Amount Raised: USD 200,000,000
- Date: November 2022
- Lead Investors: Viola Credit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and operations.
- Series B
- Amount Raised: USD 32,000,000
- Date: August 2024
- Lead Investors: New Enterprise Associates
- Valuation at Round: Over USD 200,000,000
- Motivation Behind the Round: To expand the "care now, pay later" product and continue strong revenue growth.
- Debt Financing
- Amount Raised: USD 200,000,000
- Date: August 2024
- Lead Investors: Viola Credit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and operations.
Total Amount Raised: USD 472,000,000. Current Valuation: Over USD 200,000,000.
Key Investors
- New Enterprise Associates (NEA)
- Details: NEA is a venture capital firm that invests in technology and healthcare companies. It is one of the largest and most active venture capital firms in the world.
- Investment Focus Areas: Technology, healthcare, energy.
- Notable Investments: Robinhood, Coursera, Duolingo.
- Viola Credit
- Details: Viola Credit is a credit investment firm that provides flexible and innovative credit solutions. It focuses on supporting technology companies with growth capital.
- Investment Focus Areas: Credit solutions, financial services, technology companies.
- Notable Investments: Outbrain, ironSource, SimilarWeb.
- 7wire Ventures
- Details: 7wire Ventures is a venture capital firm focused on investing in early-stage digital health companies. It aims to transform healthcare through technology.
- Investment Focus Areas: Digital health, healthcare IT, consumer health.
- Notable Investments: Livongo, Bright Health, NOCD.
- SignalFire
- Details: SignalFire is a venture capital firm that uses data and technology to invest in early-stage startups. It leverages a proprietary AI platform to identify investment opportunities.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: Grammarly, Ro, Frame.io.
- Viola Ventures
- Details: Viola Ventures is a venture capital firm that invests in early-stage technology companies. It is part of the Viola Group, which provides a range of financial solutions.
- Investment Focus Areas: Technology, fintech, healthcare.
- Notable Investments: Outbrain, Payoneer, Redis Labs.
What's Next for PayZen?
PayZen stands at the cusp of significant growth opportunities, driven by its innovative "care now, pay later" product. With the U.S. healthcare market's vast potential, the company aims to expand its offerings to more healthcare providers and introduce new financial products like the pre-care card. Leveraging AI to assist health systems in identifying patients eligible for government financial assistance further solidifies its market position.
Future fundraising opportunities appear promising, given PayZen's strong growth metrics and recent successful funding rounds. The company may continue to attract venture capital and debt financing to scale its operations and enhance its product offerings. However, challenges such as convincing healthcare providers to adopt a BNPL model and navigating regulatory landscapes could pose hurdles along the way.
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