- Chapter, a startup that helps people enroll in Medicare, just raised $17 million in new funding.
- The Series A round was led by venture firm Narya Capital, and Peter Thiel is joining the board.
- The startup plans to use the funding to hire more advisors and engineers to build better technology.
Chapter, a technology startup that helps older people enroll in Medicare, has raised $17 million in a Series A funding round led by J.D. Vance's firm Narya Capital, the company said Tuesday.
Previous investors Susa Ventures, Maverick Ventures, XYZ Venture Capital, Core Innovation Capital, and Health2047 Capital Partners also participated in the round. Peter Thiel, an investor in Chapter, is joining the board of directors, the company said.
The new round brings New York City-based Chapter's total funding to $19 million.
Founded in March 2020, Chapter — named for the chapter in people's lives when they retire — builds technology and employs full-time, licensed Medicare advisors to help people find and enroll in the best Medicare plan for them.
Medicare is the federal program that provides insurance coverage to people age 65 and older, as well as people with disabilities or certain medical conditions. This lucrative market has attracted numerous startups as the number of people enrolled in Medicare grows at a rapid clip.
Chapter was cofounded by CEO Cobi Blumenfeld-Gantz, who previously worked at the Thiel-cofounded data company Palantir, which is providing Chapter with its software. Blumenfeld-Gantz told Insider he cofounded Chapter with Corey Metzman and Vivek Ramaswamy, the founder of biotech Roivent Sciences, after struggling to help his parents and grandfather select a Medicare plan.
"It was just abysmal coming from my background to see how difficult it was and how poor the technology and resources were," Blumenfeld-Gantz said.
How Chapter plans to make enrolling in a Medicare plan easier
Chapter aims to make the process easier. People can fill out a questionnaire online, call or email, and Chapter will search every Medicare plan in the country to shortlist those that are likely right them. An advisor will then go over the options with the enrollee.
Chapter earns fees from health insurers when a person enrolls in a health plan. But Blumenfeld-Gantz said the company differs from other brokers because it doesn't limit its recommendations to plans sold by insurers that pay commissions. Chapter's competitors include big online insurance brokers like eHealth, GoHealth, and SelectQuote, as well as smaller brokerages.
Chapter advisors aren't influenced by commissions, since the company pays them the same regardless of what plans they enroll customers in, Blumenfeld-Gantz said.
He declined to say exactly how many people Chapter has enrolled in a Medicare plan, but said it's advised "thousands" of people. The startup plans to use the new funding to hire more Medicare advisors, engineers, and other staff so it can build better technology, he said.
