Catch founder says health benefits startup is shutting down
Catch co-founder Kristen Anderson tweeted Monday that the health and retirement benefits firm she and co-founder Andrew Ambrosino began six years in the past is shuttering.
Anderson and Ambrosino created Catch, and as she defined in a Twitter thread and post on the company’s website, “with a loopy concept that our benefits shouldn’t be tied to conventional employment and a W2 type.”
“We had been audacious sufficient to consider a trillion-dollar ecosystem constructed by companies, the federal government, and our monetary establishments over the past 75 years may very well be toppled by a startup turning every part on its head,” Anderson wrote. “At this time? We nonetheless consider that. We simply should admit that we aren’t those to do it proper now. Now we have made the tough choice to close Catch down.”
We’re shutting down.https://t.co/7IgFzAD1Ai
We began constructing 6 years in the past with a loopy concept that our benefits shouldn’t be tied to conventional employment and a W2 type.
— Kristen (@CatchKristen) March 6, 2023
Within the tweet, Anderson individually addressed Catch’s clients, traders, group, mates and those that she labeled “less-than-friends” about their assist as Catch scaled its app to supply payroll and benefits for people who find themselves self-employed.
Anderson beforehand spoke with me in 2021 when Catch raised $12 million in Collection A funding. The spherical was led by Crosslink and included current — and may I add high-profile — traders together with Khosla Ventures, NYCA Companions, Kindred Ventures and City Innovation Fund. In whole, the corporate raised $18.1 million in venture-backed funding because it was began in 2019.
Whereas it took the Catch group of 15 (in 2021) practically two years to get approvals to promote its platform in 38 states on the federal market, the corporate in the end had insurance coverage licenses with 47 states and the District of Columbia, based on its web site.
Upon getting these insurance coverage approvals, Catch grew to become one in all solely the eight corporations on the time to succeed in that milestone, moreover changing into one in all three authorized to promote benefits to customers, Anderson stated.
Anderson, whose Twitter profile now reads “failed fintech founder,” obtained an outpouring of assist to her tweet. Anderson didn’t reply to a request for remark.
Anderson doesn’t particularly point out why the corporate determined to shutter within the tweet, however in an e-mail despatched to Catch customers, and obtained by ClassyBuzz, Anderson and Ambrosino write, “sadly, we aren’t in a position to proceed working within the present market…” and that each one Catch accounts can be closed on April 6.
Whereas speaking in regards to the Collection A within the 2021, Anderson talked about ultimately going after a Collection B spherical. Nonetheless, within the final 12 months, the fundraising surroundings has grew to become stringent, particularly for insurtech corporations. As a number of of my colleagues have famous in latest tales, funding into the insurtech sector fell within the fourth quarter of 2022 to its “lowest stage since Q1 2020,” whereas insurtech led in M&A exits in 2021.
“Our solely hope at constructing a robust and profitable center class is to make it straightforward for a brand new sort of employee to construct belongings and defend their households,” Anderson wrote in her tweet. “There are extra iterations of those concepts to come back, and we hope that our work and learnings have moved them ahead.”