Ansel Raises $20M To Ensure Employees Are Fully Covered With Supplemental Insurance

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More than 1 in 4 Americans had trouble paying a recent medical bill according to the New York Times. 56% of Americans would have difficulty covering an unexpected $1000 expense. 66.5% of all bankruptcies are tied to medical issues. Despite the Affordable Care Act providing more health insurance coverage to more people, often this coverage is not adequate enough to prevent an acute financial burden on families. Ansel is a modern, employer-sponsored supplemental health insurance provider that covers insured members for expenses for over 13,000 covered conditions ranging from concussions to cancer. Employers can fund a part or all of the premiums or offer at the employee’s expense with integration directly into their existing benefits administration infrastructure. The company, founded as Brella Insurance in 2019, provides direct payments, typically within 72 hours, to the insured through an automated process allowing the employee to entirely skip the tedious complex claims and administration processes found with other providers.

AlleyWatch caught up with Ansel CEO Veer Gidwaney to learn more about the business, the company’s strategic plans, latest round of funding, which brings the company’s total funding raised to over $50M, and much, much more…

Who were your investors and how much did you raise?

Ansel raised $20M in a funding round led by Portage. Other participants include Two Sigma Ventures, Brewer Lane Ventures, SixThirty Ventures, Plug and Play Ventures, Digitalis Ventures, Symphony AI, Operator Partners, Morgan Creek Capital Management, and others.

Tell us about the product or service that Ansel offers.

Ansel offers a modern supplemental insurance solution with best-in-class technology. By covering 13,000 conditions, issuing payouts upon diagnosis, and providing a simplified claims experience, claiming health insurance has never been this quick and easy.

What inspired the start of Ansel?

Ansel, established in 2019, is on a mission to create a world where health challenges don’t lead to financial burdens. Our objective is to provide a unique form of supplemental insurance that streamlines the claims process, allowing users to file claims in a matter of minutes and receive benefits within hours rather than weeks.

How is Ansel different?

Ansel is different. It’s a simplified supplemental insurance solution with wide-ranging coverage from cuts with stitches to cancer, claims automation, and a painless, frictionless member experience with dedicated support along the way.

Why the name change from Brella?

Ansel underwent a name change from Brella to Ansel, which translates to “protector” in German. The new brand marks a new chapter in the company’s journey, and reflects its core commitment to shielding members from the financial impact of unforeseen health events.

What market does Ansel target and how big is it?

Ansel targets the supplemental insurance market. It is currently made available in 39 states in partnership with leading insurance carriers and is on its way to nationwide availability in 2024.

What’s your business model?

Ansel’s business model involves offering supplemental insurance plans that cover a wide range of conditions, providing cash benefits upon diagnosis. The company partners with leading insurance carriers and benefits brokerage firms.

What was the funding process like?

The recent capital infusion has elevated Ansel’s total funding to over $50 million. Ansel’s success in the funding process was attributed to presenting robust case studies supported by data that highlighted key performance indicators crucial to Ansel’s objectives. The significance of established partnerships and a tangible market presence played a pivotal role in substantiating the company’s value proposition. While raising capital is inherently challenging, Ansel strategically navigated the landscape by accumulating compelling evidence and forging industry partnerships, fortifying its position. This strategic foresight ultimately led to a successful raise, setting the stage for Ansel’s growth in the coming year.

The recent capital infusion has elevated Ansel’s total funding to over $50 million. Ansel’s success in the funding process was attributed to presenting robust case studies supported by data that highlighted key performance indicators crucial to Ansel’s objectives. The significance of established partnerships and a tangible market presence played a pivotal role in substantiating the company’s value proposition. While raising capital is inherently challenging, Ansel strategically navigated the landscape by accumulating compelling evidence and forging industry partnerships, fortifying its position. This strategic foresight ultimately led to a successful raise, setting the stage for Ansel’s growth in the coming year.

What are the biggest challenges that you faced while raising capital?

The biggest challenges encountered during the capital-raising process were rooted in the unique dynamics of the market and the rigorous standards required to secure investment. Commencing the process early in Q2 and concluding in the middle of Q4, the approximately 6-9 month timeframe was atypical but necessary. The challenge lay in meeting the high bar of proof demanded by investors, emphasizing the need to demonstrate not only the efficacy of Ansel’s product in solving a real problem but also the substantial market demand for it.

What factors about your business led your investors to write the check?

Ansel’s insurance product’s ability to provide essential financial support in times of economic challenges resonated well, making us an attractive investment opportunity for Portage, current investors, and key business partners with substantial industry experience. This success underscores the acute nature of the problem we’re addressing and the strength of our offerings in a market that prioritizes standout business models.

What are the milestones you plan to achieve in the next six months?

We aim to enhance our distribution capabilities by nurturing both existing and new partnerships. This involves dedicated efforts in technology, marketing, and the development of our distribution teams to ensure a robust and efficient operational framework. A significant portion of our investment will go into technology, reinforcing our commitment to automation and innovation. We strive to maintain a highly automated platform that not only streamlines internal processes but also contributes to the unit economics, making the delivery of our insurance product a profitable endeavor for our distribution partners. Additionally, our commitment to customer success remains paramount. Investments in operational teams and customer success initiatives ensure that our partners receive exemplary support and that our members enjoy a hassle-free claims experience. Our milestones for the next six months are rooted in blending technological advancements, operational efficiency, and customer-centric initiatives to deliver exceptional value to our partners and members.

What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?

To secure capital in a persistently high-interest rate environment, it’s crucial to demonstrate traction. Identify a pressing problem and showcase how your product effectively addresses it, supported by quantifiable metrics such as customer satisfaction, customer count, and revenue. Building a team with relevant market experience or expertise in developing similar products is essential. This not only establishes trust with potential investors but also demonstrates your capability to satisfy customers and scale successfully.”

Where do you see the company going now over the near term?

Ansel aims to continue its growth, expanding the availability of its modern supplemental insurance solution to employees nationwide. The company is poised for the next phase of growth with the recent funding and its commitment to making health hardships less of a financial burden for Americans nationwide. We plan on investing in our technology and partnerships to continue offering competitive pricing and improved capabilities to service more customers.

What’s your favorite winter destination in and around the city?

The High Line is a winter favorite.