SureCo, an Individual Coverage Health Reimbursement Arrangement (ICHRA) administrator, has announced the close of a $23m Series A funding round.
The investment was led by Health Velocity Capital, with participation from Kaiser Permanente Ventures. Health Velocity Capital counts numerous insurance carriers among its limited partners.
The company said the new funding will be used to accelerate its growth, scale its technology capabilities, expand integration with insurers, and grow its service team to meet rising customer demand.
Market dynamics for ICHRA have shifted considerably in recent years, with more than 44% of large employers reportedly considering adoption by 2026. Rising insurance costs and the demand for predictable, cost-efficient solutions have fuelled interest in this model.
SureCo CEO Matthew Kim said, “ICHRAs provide individual choice and foster competition in the market that benefits employers and employees alike. The construct represents an innovative, flexible option for large-group health benefits.”
Health Velocity Capital managing partner Saurabh Bhansali added, “When we initially evaluated the market a few years ago, carriers acknowledged that ICHRA was not a priority, and benefits consultants had limited awareness of its flexibility and advantages. This time, nearly every carrier we engaged had a dedicated point person and an emerging ICHRA strategy, while consultants consistently described ICHRA as a key tool in their arsenal.”
Daniel van den Bergh, senior investment director at Kaiser Permanente Ventures, said, “We see ICHRA as empowering employees with choice, enabling them to select the best health plans for their needs. SureCo guides employees through this process via an intuitive and high-quality end-to-end experience.”
Kim added, “This funding comes at a pivotal moment for both SureCo and ICHRA. We’re seeing unprecedented interest from large employers who are looking to offer their employees more choice and gain visibility into their healthcare costs, while lifting the administrative burden of traditional benefits administration. With the backing of Health Velocity Capital and Kaiser Permanente Ventures, we’re positioned to meet this demand and help more organisations transition to this consumer-driven benefits model.”
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