Level Secures $27 Million in Series A Funding

Level, a company focused on modernizing employee benefits, has successfully completed a $27 million Series A funding round. The investment was spearheaded by Khosla Ventures and Lightspeed Venture Partners.

Investment Details and Participants

Operator Collective and a group of prominent angel investors also contributed to this financing round. Existing investors, including First Round Capital and Homebrew, participated as well.

While the valuation was reported as reaching “nine figures,” the company has not disclosed specific figures.

Company Overview and Mission

Established in 2018 and headquartered in New York City, Level is dedicated to “rebuilding insurance from the ground up.”

Their approach centers on flexible networks and real-time claims processing, aiming to maximize the value of benefit dollars for both employers and employees.

Key Features and Benefits

Employers utilizing Level’s platform can create customized plans, including options for 100% coverage across various treatments.

A significant advantage offered by the company is its rapid claims processing capability. Claims are processed in as little as four hours.

“This is considerably faster than the 30- to 60-day processing times commonly associated with traditional insurance providers,” explained Paul Aaron, Founder and CEO.

Aaron previously held a key role at Square and led network development at Oscar Health, and holds multiple patents in the payments technology sector.

Growth and Current Customer Base

Level initially launched employer-sponsored dental benefits in the summer of 2019, onboarding its first beta customers in the fall.

Vision plans have since been added to their offerings.

Currently, the platform supports over 10,000 members from companies like Intercom, Udemy, KeepTruckin, and Thistle, who have utilized the service to pay for healthcare.

Addressing Industry Pain Points

“The current insurance landscape is often complex and perceived as inequitable,” stated Aaron. “Restrictions on provider networks, lengthy billing cycles, and unexpected costs are common frustrations.”

“We envision a future where utilizing insurance is as straightforward as any other transaction.”

Full-Stack Approach and Future Plans

Level is adopting a full-stack strategy, developing comprehensive tools encompassing automated underwriting to real-time benefit analytics.

The company intends to introduce a new insurance product designed to empower smaller businesses to offer benefits traditionally reserved for larger enterprises.

Furthermore, Level aims to facilitate the return of unused benefit funds to employers after a fixed monthly payment.

The ultimate objective is to provide a complete suite of products catering to organizations of all sizes, from small startups to large corporations with 20,000+ employees.

Cost Savings and Value Proposition

Level asserts that its self-insured dental and vision products enable companies to enhance coverage for their employees while potentially reducing benefits expenditures by nearly 20%.

Investor Perspectives

“Businesses are investing significantly in benefits, yet neither employers nor employees are realizing their full potential,” commented Jana Messerschmidt of Lightspeed Venture Partners.

“Level delivers a superior employee experience and ensures a strong return on investment.”

Samir Kaul from Khosla Ventures believes Level has the potential to revolutionize insurance and benefits, mirroring the impact of Square Cash on peer-to-peer payments.

Demonstrated Savings

First Round Capital reports a 47% cost reduction after transitioning from fully insured plans to Level.

Thistle experienced a 41% savings by adopting Level’s platform.