Dallas-based Take Command has received a $25 million equity investment from New Jersey-based Edison Partners. It said it will use the funding to expand sales and marketing, build out its customer experience-driven tech platform, innovate new marketplace offerings, and grow transformative partnerships.
Take Command is an end-to-end individual healthcare benefits platform for small and mid-market employers. Founded out of the Affordable Care Act, it launched in 2014.
“As healthcare costs continue to rise, our full stack approach to offering ICHRAs will continue to disrupt group health insurance,” Take Command founder and CEO Jack Hooper said in a statement. “We’re grateful to Edison Partners for this investment, and excited to leverage the Edison Edge to further define and accelerate our go-to-market strategy, deliver innovative offerings, and forge new partnerships to become the industry leading defined contribution platform for health insurance.”
Take Command said that in the $1.6 trillion group health insurance market, traditional group plans are limiting for employees and expensive for employers. It said the rise of a modern and distributed workforce has “paved the way for individual market plans that can be personalized to each employee.”
The company said it helps employers administer individual coverage health reimbursement arrangements (ICHRAs) using a tax-free stipend that allows employees to choose the best health plan for them while limiting cost increases and bringing 10% to 20% cost savings to employers.
Unlocking ‘the next generation of benefits’
“Take Command’s end-to-end health insurance platform has made it a dominant player in the ICHRA market,” Gregg Michaelson, Edison Partners general partner, said in a statement. “We’re impressed with the company’s growth trajectory, and confident in Jack Hooper and his executive team’s ability to capitalize on ICHRA tailwinds with large employers and build a defined contribution marketplace that unlocks the next generation of benefits.”
Michaelson will join the company’s board of directors.
Take Command said that the total addressable market for ICHRAs is estimated to be growing at a compounded annual growth rate of 19% and will be $4.1 billion by 2027, according to consulting firm Alphavate.
The company said it leads the small and middle market segments for administering ICHRAs, and large employers are now its fastest-growing segment, along with businesses being introduced through partnerships.
The number of employees on the Take Command platform has grown 60% year-over-year for the past two years, the company said, while its average revenue growth rate has been 100% over the past three years.
Take Command is the 12th investment from Edison X, adding to other active healthcare technology investments, including Capital Rx, Lokavant, PurpleLab, Virtual Health and Zelis Healthcare.
Since its founding in 1986, Edison has invested in more than 260 companies, 40 of which have been in the healthcare technology industry.
In 2021, Take Command raised $12 million in Series A funding in a round led by LiveOak Venture Partners, an Austin VC firm that focuses on tech-enabled service companies, and SJF Ventures, which invests in high-growth companies working to create a healthier, smarter, and cleaner future.
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