Insider: Noyo, a health insurance tech startup, is seeing more interest for its product with remote working on the rise. It just raised $45 million.
By Emilia David
Noyo has raised $45 million in Series B funding from investors like Norwest and Gusto.
The startup's technology helps benefits providers share data with health insurance companies.
Shannon Goggin, Noyo's cofounder, says it's seeing more interest from benefits providers.
One startup is looking to help companies deal with the shift to remote work.
Noyo provides an API that helps health insurance companies connect with the companies that use their services. Using this technology, providers remove the need for manual data entry and longer information exchange when figuring out specific benefits plan needs. Noyo also helps insurance companies modernize their systems to meet the increasingly complicated ecosystem of remote work.
The startup just closed $45 million in Series B funding led by Norwest Venture Partners with participation from Workday Ventures, Cap Table Coalition, and other existing investors like Spark Capital and Homebrew.
Shannon Goggin, cofounder and chief executive of Noyo, told Insider that it's seeing more interest from benefits providers that want to offer solutions to make it easier to shift employees into more flexible work arrangements.
"Companies are trying to use benefits to compete for talent, because people have choice as they should, and they want to work at companies that are going to support them," Goggin said."Benefits really can't be one size fits all and people need different things at different stages of their life, or different things depending on what's important to them."
Noyo's technology makes it easier for benefits providers to change an employee's information when they move around and gives them access to those benefits faster once the changes are made.
One of Noyo's clients is Gusto, who also participated in the Series B funding round, and Goggin said Noyo will deepen its relationship with strategic partners by "being closer aligned and having a more more formalized relationship."
Noyo's other partnerships include insurers and benefits platforms like Ameritas, Beam, Guardian Life, Humana, Rippling, Unum, and Zenefits.
Goggin said the funding will be used to help add more carriers to its system and add more product lines such as fertility benefits or other packages.
Goggin pointed out that the company, even with its considerable experience with distributed work environments, still has a lot to learn. But it understands that in order to better serve a changing workforce, they need to help their clients think out of the box and modernize their systems to meet demand.
"We certainly haven't figured everything out but we're really focused on getting ahead of issues," Goggin said. "Our teams are kind of right there with them thinking it through and that informs the products that we build as well."