Seattle-based startup Abett has successfully raised $11.6 million in healthcare funding, boosting its efforts to transform the way companies manage and secure their benefits systems. The funding round highlights the growing interest in Abett’s flagship product, Lockbox, a comprehensive software solution designed to provide significant cost savings for employers by efficiently managing and securely storing benefits data. Abett’s latest Series A funding round was led by Acrew Capital while other backers include GreatPoint Ventures, NextGen Venture Partners, and Royal Street Ventures
Founded by Dr. Michael Hanlon, a pioneering figure in the tech industry and one of Amazon’s earliest employees, Abett focuses on innovative systems and data storage to tackle the complex and costly world of employee healthcare. Abett’s Lockbox software is a robust tool that comprises three key components: Data Exchange, Data Acquisition and Storage, and Data Analysis.
“Lockbox helps you obtain 100% of your plan data so you can meet your fiduciary responsibility under ERISA and access critical insights. Lockbox also provides secure data storage when warehousing is needed,” states the Abett website. This functionality not only ensures compliance with regulatory requirements but also empowers companies with valuable insights into their benefits plans, enhancing decision-making and efficiency.
Dr. Hanlon, leveraging his extensive experience from his tenure at Amazon, is committed to revolutionizing American healthcare. According to the Abett site, his vision is to address the systemic issues plaguing the healthcare industry, characterized by a lack of transparency and exploitative practices. Abett’s mission is clear: to bring transparency and efficiency to a sector that desperately needs reform.
With a team of over 47 employees, many of whom share a history of contributing to Amazon’s early success, Abett is well-positioned to make a significant impact on the healthcare industry. The company’s ethos is centered around the belief that while the individuals working within the healthcare system strive to do good, the system itself is fundamentally flawed. Abett aims to be the catalyst for positive change.
The recent investment in Abett comes at a time of uncertainty in the U.S. stock market, particularly for healthcare stocks. Companies like CVS, United Healthcare, and Cetene have seen their shares slide, with Humana experiencing a substantial 10% drop. This volatility is attributed to broader economic concerns, including inflation and its impact on market confidence. However, investors remain optimistic about a potential rebound by mid-2024, as inflation shows signs of aligning with the Federal Reserve’s target range of 2%.
