PayZen, which tackles healthcare affordability with AI-powered solutions, has raised an oversubscribed Series B round of $232 million. It was led by NEA, which invested in Safebase and Magenta Medical, with participation from existing investors, including 7wireVentures, SignalFire (which invested in Stampli and Induced AI), Viola Ventures, and others.
The round includes $32 million in equity financing and a $200 million credit warehouse from Viola Credit and a syndicate of insurance companies.
How will it use the investment?
The funding round will support PayZen’s continued rapid growth and market expansion. In addition to this, Mohamad Makhzoumi, Co-CEO, NEA, will join PayZen’s Board of Directors. Makhzoumi has more than two decades of experience at NEA, partnering with transformative healthcare startups across all stages of company-building.
“Healthcare affordability is an enormous pain point for patients and providers in the U.S.,” says Makhzoumi. “We believe PayZen’s AI-enabled platform is a category leader, as evidenced by the company’s explosive traction in the past year and ability to disrupt a market that’s been historically difficult to address. Itzik and the PayZen team are driving positive change in healthcare payments, and we’re thrilled to partner with them on this next phase of growth and expansion.”
What challenge does it tackle?
Healthcare costs in the US are rising faster than incomes, leading many to delay or forgo care. The three largest US credit agencies have removed paid medical debt from credit reports, but this is a temporary fix. With healthtech funding reaching $10.7B in 2023, solutions like PayZen, using AI to create individualised payment options to make healthcare more accessible and affordable, are crucial for addressing systemic affordability issues.
What does the company do?
Founded by Itzik Cohen, Tobias Mezger, and Ariel Rosenthal, PayZen offers a platform, built upon a tight EHR integration, AI, and unique data sets, delivering a comprehensive healthcare affordability solution.
PayZen is a patient financing company offering an AI-powered healthcare payment platform trusted by leading medical providers. It simplifies the patient payment process for health systems while making it easier for millions to access and afford the care they need. It also eases patients’ financial burden while improving health system financial results.
PayZen aims to continue this momentum into the second half of 2024, bringing its affordable, customized healthcare payment options to even more Americans and introducing new AI-driven solutions that further address the affordability needs of patients.
“This latest round is the next step in our journey to remove financial barriers to care for patients,” said Itzik Cohen, CEO & Co-Founder at PayZen. “We are honored to have found partners in our investors and health systems network that share the same vision for the future. This milestone, marked by a highly competitive and oversubscribed round, positions us to continue perfecting our platform and bridge healthcare’s financial gap for good.”
