28 million Americans have no health insurance, according to 2020 Census. 53% of Americans who purchased private health insurance through an employer in 2020 Enrolled in a high deductible health plan, an increase of more than 33% in just five years. High-deductible health plans typically offer lower premiums but require patients to spend more out-of-pocket costs before insurance starts covering their care.
Sesameis an online marketplace for healthcare services, founded in 2018 to provide affordable healthcare to people who have historically been too expensive to get the care they need.On Tuesday, the New York City-based startup closure $27 million in Series B funding, bringing its total funding since inception to $75 million.
The round was led by GV (formerly Google Ventures). Virgin Group, TeleSoft Partners and FMZ Ventures are new investors and General Catalyst, Industry Ventures, Coefficient Capital, Giant Ventures and Alumni Ventures Group are existing investors.
Through its online marketplace, Sesame offers healthcare services delivered in person or through telehealth. The platform allows patients to book appointments for a variety of health needs, such as primary care, chronic care management, specialty medicine, acute care consultations, dentistry and imaging.
For CEO David Goldhill, Sesame’s mission is to create “true consumer-driven healthcare.” That’s why the company is committed to making the process of funding and receiving care as simple as possible in the direct-pay healthcare marketplace.
When patients purchase care on Sesame’s platform, they can view clinician reviews and choose the provider that best suits their needs. According to Goldhill, users will also encounter “prices that are simple, easy to understand, and don’t change after the fact.” The average price a user pays for care on the Sesame marketplace is less than $40, he said.
Sesame makes money through two core revenue lines. First, the company charges a flat fee for an appointment to book an appointment. Second, Sesame offers a membership program where users pay $99 a year or $10.99 a month. Membership benefits include $20 in savings on telehealth and primary care visits, $30 in in-person dentist or specialist visits, and free annual lab or blood tests.
A recent funding round helped Sesame grow its membership product from beta to general availability. The remaining funds will be used to drive the company’s continued growth, particularly expanding the availability of care options and settings related to a wider range of conditions.
As Sesame continues to grow, the company is working to ensure consumers understand its platform and the savings they can expect from it. As a direct-to-consumer company, Goldhill says Sesame “has a clear advantage over traditional healthcare products” when it comes to market awareness.
He said Sesame has pitched itself as the company that “invented a new healthcare system without anyone noticing” in order to distance its platform from the burden of bureaucracy and added overhead of traditional healthcare systems. The company actively spreads this message through organic search, email marketing, digital and performance advertising, social media, influencers and press releases.
Still, Sesame isn’t the only company offering affordable direct-to-consumer healthcare — plush toy, healthy and Tradock Aim to do the same thing. Goldhill said Sesame has been able to provide a wider range of primary care and specialty care options in its marketplace, including mental health, gastroenterology, gynecology, Cardiology, Dermatology, Urology, Laboratory and Imaging.
By offering a full range of healthcare on its platform, Sesame addresses a historically unmet need and provides a viable option for Americans who struggle to afford healthcare in the traditional system, Goldhill said.
“Think of us as an Expedia for healthcare,” he said. “Doctors and providers list their services at a specific cash price, just like an airline might list a flight on Expedia, consumers can simply buy what they want directly online without the insurance company’s Middleman. Providers can dynamically price, modify and change pricing to provide affordable prices at all times of the day and all times of the week. This concept does not yet exist in healthcare.”
Photo: alexsl, Getty Images
