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November 10, 2022 : Seattle healthcare analytics startup Abett raised $6.5 million to expand its software that assists employers get a handle on benefits data.
Founded in 2019, the company pitches an enterprise software solution to big employers that legally move HR and benefits data from diverse stakeholders. The goal is to allow these businesses to analyze what is being done with the funds they spend on health projects.
“In the standard model, the employer is usually cut out of all the economic deals,” founder and CEO Mike Hanlon spoke to GeekWire. “The employer is pumping funds into the system, but they can’t observe anything, let alone interfere.”
Hanlon was the seventh employee engaged by Amazon, functioning on operations and software development from 1995 to 2001. He also functioned as a professor of economics at the Institute for Health Metrics and Evaluation, a University of Washington research institution that studies global health statistics.
The second startup that Hanlon founded named Abett. The first iteration was a web application that permitted users to ask questions and crowdsource solutions. However, he said that the company shut down momentarily after GeekWire profiled it in 2017.
One of the legal tailwinds pushing Abett’s business model was the road of the 21st Century Cures Act, which limits information blocking by providers and carriers over customer healthcare data. Hanlon stated the legislation made it clear that the data belonged to the employers supporting the plan and the individuals characterized by it.
This data is helpful to an employer because it lets them see where money flows, authorizing them to manage costs and reduce spending. Abett is among the first wave of developments that are specifically targeting this market prospect, Hanlon expressed.
The startup works with big employers, including multiple Fortune 10 companies. Hanlon refused to name specific customers. The startup’s data partners contain CVS Pharmacy, United Healthcare, and Travelers Insurance.
GreatPoint Ventures led the round. Abett closed two earlier rounds, in 2020 and 2021, with the first led by Stage Venture Partners and the other by NextGen Venture Partners. The startup has boosted a total of $12.1 million.
