SAN FRANCISCO–(COMMERCIAL WIRE)–PayZen, the fintech company addressing healthcare affordability with free, personalized patient financing solutions, has raised a $220 million growth round to strengthen its leadership position as a pioneer in the new category of affordable financing. The round is comprised of $20 million in equity financing and a $200 million credit facility. The oversubscribed capital component was handled by 7wireVentures, while Viola Credit provided a $200 million deposit facility of credit to support continued market expansion. This latest round of investment reflects the significant and rapidly accelerating industry demand for PayZen’s affordable financing platform since it was introduced last year.
Since PayZen’s last round in November 2021, the healthcare-focused fintech company has doubled its revenue every month and expects its growth trajectory to continue due to growing market need. PayZen will use the funds to scale its operations and product development as interest in its platform continues to resonate with healthcare systems looking to address payment challenges facing their patients.
PayZen has significantly expanded its existing warehousing facility to feed the growing demand for its products from healthcare providers. Since nearly 1 in 10 adults carry significant medical debt In light of rising healthcare costs, this expansion allows the company to directly improve the financial well-being of millions of US healthcare consumers in significant ways.
“This exciting round is a testament to PayZen’s product innovation and the immense need for more affordable payment options for patients trying to pay their medical bills,” said Itzik Cohen, PayZen co-founder and CEO. “Health care equity and affordability is a critical issue in the US Too many Americans have delayed or foregone getting the care they need because they aren’t offered an affordable way to pay. At PayZen, we are determined to help fix this broken system.”
7wireVentures (an established heavyweight in healthcare technology venture capital investments), Viola Group (a leading technology-focused investment group) and SignalFire (the first venture capital firm built from the ground up as a technology company ) are expanding their original investment after participating in PayZen’s Series A round last year. All other current investors also participated, including Link Ventures and Picus Capital. As part of the latest round, Lee Shapiro, co-founder and managing partner of 7wireVentures, will join PayZen’s board. Shapiro has more than 20 years of experience in the healthcare space, including as president of Allscripts and most recently as CFO of Livongo, which he helped lead from launch to initial public offering and an $18,500 merger. million in 2020.
“With medical debt being the leading cause of bankruptcies in the US, and with so many people without the cash available to meet emerging healthcare needs, there is a pressing need to find a solution to address this challenge,” he said. Shapiro. “PayZen is directly aligned with our beliefs at 7wireVentures about the importance of using technology-enabled services to solve the pain points consumers face in accessing health and care. We are honored to work with this great team on this important mission.”
Looking forward to 2023, PayZen will accelerate its mission to make free, affordable, and personalized payment options available to all Americans, leveraging its technology leadership to become the healthcare industry’s integrated financial platform. Hospitals and healthcare systems that want to improve revenue and cash flow while offering patients more affordable payment options should contact PayZen.
For more information please visit: www.payzen.com.
PayZen is a mission-driven fintech healthcare company that aims to address the growing problem of patient payment responsibility with superior technology and a modern approach. PayZen is backed by leading equity and credit capital investors and is led by proven technology veterans with a successful track record of helping millions of Americans overcome financial hardship.
About 7wire Ventures
7wireVentures is one of the nation’s leading venture capital firms investing in early-stage digital health companies that support an “Informed and Connected Health Consumer,” the epicenter of a convergence of health and care markets that prioritizes to the consumer and is enabled by technology. The fund’s successes, such as the founding of Livongo, are due in large part to the fact that the team includes both seasoned traders and investors with extensive industry experience. Being highly selective with investments, the fund works closely with founders to create companies that change the status quo and empower consumers to be better stewards of their health. As business builders, the 7wire team has taken on highly involved roles, in some cases even following a Hatch strategy for starting promising new companies. Visit 7wireventures.com.
About Viola Group
Viola is Israel’s leading technology-oriented investment group with more than $2.8 billion in assets under management. The group provides long-term, world-class returns by identifying and pursuing attractive investment strategies at all stages of the vibrant Israeli technology and industrial market.
It is made up of separate focused investment legs, including: Viola Ventures – a technology-focused early-stage investment fund with over $1B AUM, Viola Growth – technology-focused growth equity fund with $440 million under management; and Viola Credit, the debt arm with $600 million under management, as well as other dedicated vehicles. Each association operates independently with a dedicated investment team and different investors, fund groups and portfolio companies, but share access to value-added services that give entrepreneurs the edge they need to succeed on the global stage.
Founded in 2000, Viola’s team includes more than 30 investment professionals and 40 support staff, and has invested in more than 200 technology companies.