A Philadelphia health care coverage innovation startup has raised $1.6 million and will send off the following week in four states, with plans to grow to three more before the year’s over.

Antecedent Endeavors, Elefund, V1.VC, Kindergarten Adventures, and Westerly Endeavors took part in the pre-seed round.

StretchDollar’s foundation tries to make it more straightforward for private companies to set up medical coverage plans for their workers. Its foundation is set to send off in Pennsylvania, Delaware, Illinois and Colorado on Oct. 1. The startup, which has a second central command in San Francisco, is following to cover California, North Carolina and Texas toward the finish of 2023 with plans to be in every one of the 50 states in 2024.

Fellow benefactor and President Marshall Darr’s advantage in the medical coverage industry started about 10 years prior after he cut a ligament in his finger. He was 25 at that point and had quite recently gotten some work after his initially startup didn’t work out. Assuming the mishap had happened fourteen days sooner when Darr didn’t have health care coverage, his clinical costs would have cost him $44,000, he said.

In the ten years since, Darr’s profession has centered around reasonable medical care and assisting little organizations with giving health care coverage. Alongside Kaiza Molina, he helped to establish StretchDollar in Spring. The team recently worked at and developed fintech firms zeroed in on private companies like San Francisco-based Fervor and Austin-based Good.

Darr portrayed StretchDollar as “a subsidizing vehicle” and “another way for independent ventures to move toward medical care benefits.” Rather than private companies setting up bunch insurance designs that can be costly and time-escalated, they can straightforwardly give workers a pre-charge payment to go toward their health care coverage installments. StretchDollar utilizes authorized agents to assist with associating private company representatives with reasonable medical services plans and the medical care arrangements process takes entrepreneurs “under five minutes” to set up, Darr said.

StretchDollars charges a level expense of $15 for every worker on the stage. It additionally procures commission from medical organizations when wellbeing plans are sold.

That is a huge decline from the two to about two months it can take private companies to set up bunch plans for their representatives and which can cost about $1,000 per worker, Darr said.

StretchDollar

Following its foundation send off with a modest bunch of organizations, Darr said the startup is “hoping to grow rather rapidly through the year’s end.” There has been a ton of starting interest from private companies in the Philadelphia region, he said.

“Our goal is to get to a couple hundred companies on the platform by the end of the year. That should take us to somewhere between $500,000 and $1 million in annual recurring revenue,” Darr said. “From there, we’re going to look into raising our seed round sometime early next year. Hopefully from there, I think we’re going to have a real shot at reaching profitability.”

StretchDollar at present has five representatives. Following the approaching seed round in mid 2024, Darr is hoping to grow headcount to around 20 to 30. However Darr didn’t reveal a particular objective number for the following round, he has aggressive objectives.

“I have a number in my head, it’s quite large, but I need to justify it with the work we actually do first,” Darr said.