Medicare navigation company raises $100M to improve its AI, launch new financial products
A company that uses artificial intelligence to help seniors navigate the Medicare program—including advice on selecting a Medicare Advantage plan, ways to get cheaper prescriptions and more—has raised $100 million in a Series E funding round.
In announcing the influx of cash on Thursday, Chapter confirmed that it has doubled its valuation since the last round of investments, which closed less than a year ago. The group said it plans to use the money to launch new financial products that will "improve the lives of seniors, the demographic most underserved by technology companies today.”
Chapter, which is based in New York City, is the nation’s largest Medicare navigation business—and since its founding in 2004, its platform has been intended to be a one-stop-shop for the Medicare program, where anyone at enrollment age can get credible advice catered to their unique healthcare needs and find a provider who suits them.
The firm has a large staff of licensed consultants, fully educated on the federal government program and its many branches into the private insurance market. Chapter has earned its users’ trust because it aims to be impartial, unmoved by potential financial incentives from health plans.
“Most technology companies ignore retirees. Our mission is to ensure every senior is able to preserve their health, wealth, and purpose by building products that we wish our own parents had at the outset of retirement," Cobi Blumenfeld-Gantz, CEO and Co-Founder of Chapter, said in a statement. “We are the only company that reviews every single Medicare plan nationwide and offers unbiased guidance, and we are rapidly building additional products that will empower seniors to author the next chapter of their lives.”
AI designed with seniors in mind
Over the years, artificial intelligence has become central to the Chapter experience, supporting human advisors and automating some of the information retrieval users are seeking.
Funds from this Series E will be used to continually improve and build out those capabilities, the company said.
This latest round was led by Generation Investment Management, with support from previous backers Addition, Narya Capital, Susa Ventures, Stripes, XYZ Venture Capital and Maverick Ventures.
“Cobi and his team have earned the trust of American seniors by building a data and AI platform that provides accurate information and impartial advice in an industry largely devoid of either,” Anthony Woolf, Partner at Generation Investment Management, said. “They have rapidly become the premier option for Medicare plan selection and utilization. As our society is gradually transformed by artificial intelligence, Chapter is uniquely positioned to ensure that advances in technology serve the needs of seniors.”
Fifth Down Capital and 8VC also joined in to provide funds, both of which had not invested in Chapter previously.
Last year, Chapter tripled its revenue. Currently, it takes in more than $100 million annually. The company boasted about its “excellence in hiring” and said its corporate headcount has remained flat for over a year, despite the rapid growth.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.