Home Health Care Carrot Fertility plans expansion with $24M in new funding

Carrot Fertility plans expansion with $24M in new funding

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Carrot Fertility, a startup managing fertility benefits for employers, raised $24 million in funding. U.S. Venture Partners led the series B round, with participation from F-Prime Capital, bringing the total amount the startup has raised to date to $40 million.

The company plans to use the new funds to further its global expansion and expand its telehealth services.

Carrot manages fertility benefits for more than 100 companies, including tech firms Snap Inc., Box and Peloton. It covers procedures such as in-vitro fertilization, surrogacy, and egg or sperm freezing through a direct reimbursement model. For example, an employee’s company can pre-load a debit card that they can then use to pay for their fertility treatments.

Since the start of the pandemic, Carrot has also built out a telehealth program for its members, that it plans to expand with the new round of funding.  The company said its members can access appointments with OB/GYNs, reproductive endocrinologists, urologists and adoption experts through virtual appointments.

“Carrot has experienced tremendous growth over the last year, establishing itself as the clear global fertility benefits leader,” U.S. Venture Partners Managing Partner Dafina Toncheva said in a news release. “We’re excited and honored to support the Carrot team as it expands its global operation, brings more innovative products to market and redefines workplace benefits so everyone has access to fertility care, which we believe is an essential part of healthcare.”

Other fertility benefits companies have experienced recent growth as more employers see then as a necessity. In October, Progyny raised $130 million in an IPO. CEO David Schlanger said the company continued to make new sales and that its existing clients planned to continue with their fertility benefit next year.

“… our new sales activity continues to be positive, even while we have heard from some benefits teams that the lasting duration of the pandemic and the distraction it is causing is making it difficult for them to consider changes to their programs for 2021,” he said in a news release.

The startup saw its revenue increase by $10 million last quarter, but reported a $1.8 million net loss. Progyny said member utilization dropped during the second quarter, as most clinics weren’t initiating new treatments, but has recovered back to about 90% of normal levels.

Photo credit: Nuthawut Somsuk, Getty Images

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