StretchDollar, a groundbreaking platform simplifying health benefits for small businesses, has announced the successful close of a $6 million seed funding round led by TX from Fika Ventures, with participation from Oscar Health, Springbank, and Precursor Ventures. The funding marks a significant step in empowering small businesses to offer employees accessible and personalized health insurance options.
Traditional group health insurance plans have become increasingly scarce as major carriers phase them out, leaving over 60 million Americans with limited and costly options. StretchDollar was created to address this growing gap by providing a simpler solution. The platform allows small business owners to allocate a pre-tax monthly allowance that employees can use to offset the cost of individually chosen health insurance plans, supported by licensed brokers.
Since its launch in early 2023, StretchDollar has rapidly gained traction. Nearly 80% of the platform's customers are offering health benefits for the first time. Over 100 small businesses have already adopted StretchDollar to provide employees with flexible and cost-effective health coverage, transforming the way small companies manage employee benefits.
The pre-seed journey began in 2023 with support from investors including Charles Hudson at Precursor Ventures and Nat Friedman at Kindergarten Ventures. Their early belief in StretchDollar laid the foundation for its mission to make small businesses the best places to work.
The funding enables StretchDollar to expand its team and further the mission of simplifying health benefits for small businesses. The impact of the platform extends beyond logistics to meaningful personal outcomes, including cases like a type one diabetic whose out-of-pocket costs for insulin dropped from $1,400 to $30 with a better-matched individual market plan.
With a dedicated team, passionate investors, and a clear vision, StretchDollar continues its mission to reshape health benefits for small businesses nationwide. This milestone represents a bold step forward in building a future where small businesses thrive.
