An early Amazon employee founded a healthcare analytics startup that receives $6.5 million
- ByStartupStory | November 15, 2022
Abett, a Seattle-based healthcare analytics startup, raised $6.5 million to further its software that aids companies in managing benefits information. The 2019-founded business offers major employers an enterprise software solution that transfers lawful HR and benefits data from numerous partners. The objective is to provide these businesses the ability to examine how the money spent on health plans is being used.
According to founder and CEO Mike Hanlon, “the employer is completely shut out of any economic dealings under the traditional approach.” “The employer is pouring money into the system, yet they are unable to even watch or do anything.” From 1995 to 2001, Hanlon worked on operations and software development as Amazon’s seventh hire. He also served as a professor of economics at the Institute for Health Metrics and Evaluation, a University of Washington research centre that focuses on statistics related to global health.
This is the second Abett-founded company that Hanlon has established. The initial version was a web application that let users ask queries and crowdsource solutions.The passage of the 21st Century Cures Act, which limits information-blocking by providers and carriers over consumer healthcare data, was one of the legal tailwinds supporting Abett’s business model. Hanlon asserted that the legislation made it clear that both the individuals it represents and the employers sponsoring the plan owned the data. The ability to manage expenditures and cut spending is provided by being able to see where the money is going, which is why employers value this data. According to Hanlon, Abett is one of the first solutions that particularly targets this market opportunity. The start-up collaborates with numerous Fortune 10 corporations and other significant employers. Hanlon declined to mention any particular clients. Among the data partners for the startup are CVS Pharmacy, United Healthcare, and Travelers Insurance. GreatPoint Ventures took the lead in the financing. Abett completed two prior rounds in 2020 and 2021, with Stage Venture Partners leading the first and NextGen Venture Partners the second. The startup has raised $12.1 million in total.
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