Revolutionizing Employee Benefits in Healthcare
Kia Ora friends!
Startup of the month: HealthNow
We are pleased to announce that NZVC has recently invested in HealthNow, a pioneering player in the employee benefits payment platform space. HealthNow simplifies the provision of healthcare allowances for large, diverse, and distributed teams, allowing organizations to select approved vendors and pay only for utilized services. HealthNow offers employees a streamlined experience with increased choice and simplicity in accessing healthcare benefits by removing the pay and claim process which takes time and resources for both employer and employees.
Our decision to invest in HealthNow was driven by several compelling factors:
Market Opportunity: HealthNow targets a significant market segment in Australasia where less than 30% of the population has health insurance. Their platform addresses a critical need in the employee benefits sector, which is a vital component of organizational strategy in attracting and retaining talent.
Innovative Business Model: HealthNow successfully pivoted from its initial Buy Now Pay Later (BNPL) model to a MasterCard-based solution for healthcare benefits. This pivot was crucial as it simplified the user experience, reduced operational complexities, and aligned with the economic realities of the market.
Scalable Revenue Model: The company's revenue model is robust, charging employers $4 per employee per month. With an average employer size of 120 employees, this presents a scalable and predictable revenue stream. Furthermore, the upfront payment and expense management mechanism ensure sound credit risk management.
Strong Traction and Growth Potential: Since launching the new business model in January, HealthNow has acquired 57 customers and 1,000 end users. Recent months have seen significant uptake with 15 new companies onboarded, demonstrating accelerating growth momentum.
The Founder: Steven Zinsli exemplifies the qualities we seek in a founder. Driven by a personal experience with healthcare access limitations, he brings a clear and passionate vision to HealthNow. His success co-founding a multi-disciplinary allied health chain (Physio Connect) demonstrates his entrepreneurial acumen. We like his direct approach which can be rare in NZ founders. Steven surrounds himself with experienced talent and prioritizes efficient resource allocation.
The company has demonstrated a product-market fit following its strategic pivot, a scalable revenue model, and robust growth prospects in a large and underserved market. We believe that HealthNow is well-equipped to capitalize on its vision of becoming a pivotal player in the healthcare benefits ecosystem in Australasia.
Best regards,
Mark Pavlyukovskyy, Ajay Gupta, and Glen Anderson