Abett Raises $11.6M to Revolutionize Employer Health Plan Management

Abett Secures $11.6 Million in Series A Funding to Enhance Healthcare Data Platform

A Seattle-based startup, Abett, has successfully secured $11.6 million in a Series A funding round to bolster its software platform. The platform aims to assist large employers in managing and analyzing health plan data, particularly in the midst of increasing cyber threats and evolving legislative requirements. Abett's Lockbox product, tailored for benefits teams, facilitates data sharing, storage, and analysis of employee healthcare services, with the goal of identifying potential alterations to benefit plans that could result in cost savings and other advantages for companies. Notably, the recent Change Healthcare cyberattack has prompted employers to reconsider their data storage strategies, presenting an opportunity for Abett to provide value in this context. The startup, co-founded by Mike Hanlon, a former Amazon employee, currently boasts a team of 47 individuals, including several ex-Amazon colleagues. Acrew Capital led the funding round, with additional participation from GreatPoint Ventures, NextGen Venture Partners, and Royal Street Ventures, bringing the total funding to date to $27 million.

Key Takeaways

• Abett secures $11.6 million in Series A funding to enrich its healthcare data management platform, particularly in light of escalating cyber threats and evolving legislative requirements.
• The Lockbox product enables benefits teams to analyze employee healthcare data, thereby identifying opportunities for cost savings and other benefits for companies.
• Recent cyberattacks and legislative changes are driving demand for Abett's services, positioning the company for future growth and success.
• Abett's CEO, Mike Hanlon, brings valuable experience from Amazon and the University of Washington, and the team includes several former Amazon employees.
• Acrew Capital leads the $27 million total funding to date, with additional investments from GreatPoint Ventures, NextGen Venture Partners, and Royal Street Ventures.

Analysis

The Series A funding obtained by Abett, a healthcare data management platform, will play a pivotal role in enhancing the company's software to cater to the rising demand for robust health plan data analysis, especially in the aftermath of the Change Healthcare cyberattack. Co-founded by a former Amazon employee, Abett's growth trajectory may have implications for similar tech companies and venture capitalists, including Acrew Capital, GreatPoint Ventures, NextGen Venture Partners, and Royal Street Ventures. Moving forward, the surge in demand for data security and compliance with legislation such as the 21st Century Cures Act and the 2021 Appropriations Act is expected to be a driving force behind Abett's short-term accomplishments. In the long run, the data-driven insights provided by Abett could potentially influence the structures of benefit plans, subsequently reducing healthcare costs for businesses.

Did You Know?

• Series A Funding: This type of venture capital financing involves a company raising capital from investors, typically following a seed funding round. Abett secured $11.6 million in Series A funding, which will be allocated toward enhancing its healthcare data management platform.
• 21st Century Cures Act and the 2021 Appropriations Act: These U.S. legislations hold substantial implications for healthcare technology companies like Abett. The 21st Century Cures Act, passed in 2016, aims to expedite medical product development and encompasses provisions related to healthcare information technology. The 2021 Appropriations Act includes provisions pertaining to surprise medical billing and transparency, potentially propelling the demand for Abett's services.
• Acrew Capital, GreatPoint Ventures, NextGen Venture Partners, and Royal Street Ventures: These are venture capital firms that have invested in Abett. Acrew Capital spearheaded the Series A funding round, while the other firms have participated in prior funding rounds. These entities offer capital to startups in exchange for equity and often provide strategic guidance and connections to support the growth of their portfolio companies.