Company name: CaringWays
Amount raised: The Nashville-based health care fintech has raised a $2.5 million round of funding, according to a news release, led by Brentwood-based Caduceus Capital Partners and and Nashville-based Harpeth Ventures.
What they do: CaringWays’ platform allows patients to crowdfund to pay for medical expenses, prescription drugs and other health care-related needs, according to the release.
Crowdfunding is when users go online to raise small amounts of money from a large number of people. It was become popularized on platforms such as Kickstarter and GoFundMe.
While users can raise money for medical expenses on other platforms, CaringWays is the first platform designed specifically for patients, according to the release. Hospitals and other health care facilities are paid directly through the platform.
Why it matters: “Americans borrowed $88 billion to pay for healthcare services in 2020 and medical debt is the leading cause of personal bankruptcy in this country,” Dave Vreeland, Caduceus Capital Partners senior managing partner, said in the release. “CaringWays is a viable answer to this significant problem.”
What the funds will be used for: CaringWays will use the funds to “accelerate growth and expansion in the healthcare services market.”
Quotable: “I know firsthand that unexpected medical expenses can cause stress and anxiety for patients and their families. CaringWays fills a gap in helping patients, their loved ones and hospitals resolve medical bills in a way that is convenient and secure,” CaringWays cofounder and CEO Wes Sellers said in the release. “We believe that this solution is a rising tide that lifts all boats.”