Letter from the CEO: Noyo’s Series B and raising the bar for benefits
We are excited to share that Noyo has raised $45M in Series B funding to power better benefits experiences for everyone. This round was led by Norwest Ventures with participation from Cap Table Coalition, Workday Inc.’s investment arm Workday Ventures, Gusto, and existing investors Costanoa, Homebrew, Spark, and more.
We believe everyone should have access to flexible, relevant benefits that are easy to understand and easy to use. To make that possible, Noyo builds the foundational technology powering next-generation benefits experiences with relevant, accurate, and transparent data.
This funding round reflects enthusiastic validation of Noyo’s approach to a notoriously complicated and incredibly important industry. I am grateful for our investors’ conviction, our team’s commitment, and our customers’ collaboration that make it possible to collectively raise the bar for what’s possible in benefits every day.
It’s a critical time for the benefits ecosystem. The COVID-19 pandemic underscored the need for long overdue upgrades to our benefits and healthcare systems. Benefits are now increasingly complex, as companies seek to support an increasingly distributed workforce that spans dozens of different states and needs. At the same time, benefits have become critical to hiring and retaining talent in a tight labor market, as workers demand more flexibility and customization.
The last year has been a whirlwind for Noyo: we’ve announced major partnerships, released new products, and grown our team by almost 120%. This latest round of funding will fuel even more growth and innovation across our industry partnerships, product development, and the Noyo employee experience. You can learn more about some of these initiatives from our Solutions Architect, Daryl Hemeon, VP of Product, Elaina O'Mahoney, and Head of People Operations, Liz Graham.
Where are we going next as a business? Today’s news is a happy excuse for me to share more about where Noyo is headed. I am sharing this plan publicly because it’s not just a promise to Noyo’s customers, but to everyone in this ecosystem – including the American workers who rely on and use their benefits every day.
Here’s where Noyo is focused as we work to change benefits for good:
1. Power the complete policy lifecycle
Until modern technology principles are broadly adopted, people will continue to feel the negative effects in their daily lives: difficult-to-understand coverage, inflated costs, and an overall slow pace of innovation. Noyo structures and enriches data across many systems and uses that data to solve a broad set of needs – we started with policy administration and enrollments because knowing who was enrolled in what coverage at what time is the source of truth from which everything else cascades: payroll deductions, billing, commissions, claims, and more.
Getting enrollments right and solving core data problems provides a compounding advantage. We’re proud to offer the only technology on the market that makes benefits data usable by programmatically detecting and interpreting changes across systems, creating 85% improvement in processing time over alternative solutions. We’ll continue to extend this technology across the entire benefits stack to enable developers to build truly incredible benefits software.
2. Connect the entire benefits ecosystem
The benefits ecosystem today struggles with siloed data that is locked away in flat files, portals, or even paperwork. We’re leaving that behind by making key benefits data available on-demand to the apps and stakeholders who need it. Today, our API engine serves insurance carriers and benefits software platforms, and we are actively expanding our connections further throughout the ecosystem to insurtech solutions, fintech apps, payroll companies, and more.
Soon, Noyo’s technology will be table stakes for every company in the benefits space that wants to activate new partners, build new consumer-facing apps and products, and improve the customer experience.
Imagine if processing premium payments, disbursing broker commissions, and paying out claims all happened seamlessly on top of the same high-quality dataset. Or if finance apps could take benefits choices into account alongside investments, payroll deductions, 401k and HSA contributions, and personal finance data to create a holistic picture of how someone’s benefits are working (or not working) for them. Noyo is architecting the foundational tools and technology that will make all of this possible.
3. Redefine what’s possible in benefits
There are so many new benefits products coming to market – fertility coverage, caregiving and mental health support, and even home ownership assistance – that break away from the old one-size-fits-all model in support of highly personalized and highly impactful benefits. The new era of work requires new systems and new ways of thinking, and Noyo will support and power that progress at every turn.
Startups and established carriers alike will be able to design new products on top of our foundational technology, with unprecedented business intelligence drawn from near real-time data on enrollment and utilization. The products themselves will get smarter too, once they’re connected to other benefits that someone may be using (for example, HSA contributions that are automatically adjusted based on changes to someone’s pay).
Finally, better connectivity means it will be easier to test and scale these new products and get them quickly into the hands of people who might not have tried them otherwise. If it’s no longer a monthslong process to activate coverage, imagine how easy it would be to develop a fully transparent onboarding experience or pilot a product in an emerging market.
In addition to building change for the benefits industry, we knew from the start that we wanted to build Noyo as a different kind of company. We set out to create an environment that invests heavily in our employees and creates opportunities for people of all backgrounds, designing policies and programs around everyone’s continued success. That’s why we chose to be a distributed-first company from day one and focused early on professional development, coaching, and apprenticeship within our team. It’s also why we’ve invested so much time and energy into our JEDI (justice, equity, diversity, and inclusion) and ERG (employee resource group) initiatives.
There’s never been a better time to be building in benefits. We are hiring across all roles – join us!