Caraway Secures Series A Funding to Fundamentally Change How Gen Z Experiences Healthcare

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Jun 20, 2023, 13:25 ET

Digital Healthcare Company for Gen Z Secures $16.75M Series A Funding Led by Maveron and GV; Virtual Healthcare Services Now Available in Ten States – California, Colorado, Pennsylvania, Illinois, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio

NEW YORK, June 20, 2023 /PRNewswire/ -- Caraway, a digital healthcare company for Gen Z, announced a series of milestones and expansions to fundamentally change how Gen Z experiences healthcare. To advance the development of its Gen Z care platform and scale its services, Caraway today announced $16.75M in Series A funding. The round is led by Maveron, investor in consumer-only and early-stage companies, and GV. Returning investors include 7wireVentures and Hopelab Ventures, with new participation from Wellington Access Ventures, Ingeborg Investments and The Venture Collective. OMERS Ventures, a seed stage investor in Caraway, will remain on the Board.

Furthering its expansion across the nation, Caraway also announced that it is rolling out its virtual care services in six more states: Colorado, Pennsylvania, Illinois, Massachusetts, Michigan and New Jersey. Along with existing states, California, New York, North Carolina and Ohio, this brings the total to ten states that will offer access to 44% of 18-29 year olds enrolled in post-secondary institutions, including colleges and universities, trade and vocational schools.

In just one year, Caraway has built an inclusive care model that addresses the multitude of healthcare challenges facing Gen Z by providing mental, physical and reproductive healthcare, 24/7, all in one place. Caraway's diverse care team of experienced clinicians provides comprehensive and compassionate care tailored to this population's needs and concerns. With its on-the-ground, grassroots approach, the company's ongoing engagement with Gen Z informs all of its products, services and educational content. The funding round will be used to expand access to Caraway's ground-breaking care platform purpose-built for Gen Z people of all races, ethnicities, gender identities and expressions.

"Gen Z's health is on the front lines and the only way to meet their needs is to design a new way forward," said Caraway CEO & Co-founder Lori Evans Bernstein. "With the tsunami of unmet need, our inclusive care platform gives Gen Z – and in particular women and those assigned female at birth who have been underserved by traditional models – instant access to both the immediate health services and ongoing education they need to take care of themselves today and in the future."

Healthcare has yet to catch up with the needs of Gen Z, the largest, most diverse and disruptive population, and their care options are inadequate.

The mental health epidemic is getting exponentially worse with 5 5% of Gen Z classifying their mental health as poor, and they've been identified as the loneliest generation.
Reproductive health restrictions are devastating to women's health, with 88% of women facing at least one barrier to getting access to oral contraceptives.
Existing care options are not meeting the needs of young women, as nearly half report negative interactions with their healthcare providers.
And, 75% of Gen Z is concerned that ill health will impinge on their life experiences.

As Gen Z faces this unprecedented healthcare crisis, they lack access to care and a trusted consumer experience built for their mobile-first expectations. They've been excluded from their healthcare decision making and the healthcare system is not meeting their growing needs.

Caraway provides care for members 24/7 through chat, phone, and video visits, as well as health skills building with interactive digital tools, coaching and care navigation. Caraway's clinicians work together as one Care Team with the understanding that the mind and body are connected, and therefore physical, reproductive and mental care must go hand-in-hand. The Care Team is composed of experienced nurse practitioners, physicians, specialists, therapists, and health advisors with expertise spanning primary care, urgent care, adolescent health, gynecology, psychiatry and psychotherapy.

"Maveron invests in early stage companies that empower consumers to live on their own terms," said Maveron Partner, Anarghya Vardhana. "Caraway supports young adults in a way traditional health care models do not, fundamentally changing their healthcare experience. We are excited to help Caraway's extraordinary team continue to build a consumer-first company that directly engages with the Gen Z population giving them access to a care platform and high quality healthcare tailored to their needs."

"GV is proud to be an early investor in Caraway, and we are excited to support the team as they create a new standard of healthcare for the Gen Z population," said Cathy Friedman, GV Executive Venture Partner. "Caraway is led by a seasoned, mission-driven management team adept at navigating the complexities of the healthcare system. Caraway's unique approach provides comprehensive mental, physical, and reproductive healthcare for better patient outcomes."

"We are thrilled to make a follow-on investment in Caraway," said Margaret Laws, president and CEO of Hopelab, a transformative social innovation lab and impact investor at the intersection of tech and mental health. "We are particularly excited to continue supporting Caraway as they expand their offerings for BIPOC and LGBTQ+ patients, as well as those on Medicaid. Caraway not only understands a unique gap within the healthcare system but offers a solution that focuses on populations routinely overlooked by traditional models of care. Their exceptional progress is a model for others pushing the impact of telehealth innovation while also advancing health equity goals."

"What Lori and the entire Caraway team have accomplished in such a short period of time is compelling," said Alyssa Jaffee, partner at 7wireVentures. "Now more than ever, a renewed focus on promoting and supporting the fundamental healthcare rights of women is critical. Caraway is already making a real difference in the health of young women, those AFAB, and by providing personalized care for all. With this new funding round and the addition of strong like-minded investors, Caraway will meaningfully expand their ability to serve more health consumers across the country."

About Maveron
Maveron is a venture capital firm that focuses on early-stage investments in consumer-oriented businesses. It was founded in 1998 by Dan Levitan and Howard Schultz, the former CEO of Starbucks. Maveron has a particular interest in companies that are disrupting traditional industries and creating innovative consumer tech brands. They have invested in various successful companies such as eBay, Zulily, Allbirds, Modern Fertility, and Everlane. Their goal is to support entrepreneurs who are building compelling consumer brands and experiences. In healthcare in particular, Maveron invests widely, including critical areas, like mental health, pediatrics, primary care, women's health, and rare disease.

About GV
GV supports innovative founders moving the world forward. We invest across the life sciences, consumer, enterprise, crypto, climate, and frontier technology sectors.

With Alphabet as a sole limited partner, GV operates on long time horizons and deals in decades, not rounds. Our operating partners support startups at the earliest stages of company-building across design, equity, diversity & inclusion, talent, and engineering. We also help startups interface with Google, providing unique access to the world's best technology and talent.

Launched as Google Ventures in 2009, GV has over $8 billion in assets under management and 400 active portfolio companies across North America and Europe. Notable investment outcomes include Uber, Nest, Slack, GitLab, Duo Security, Flatiron Health, Verve Therapeutics, and One Medical. GV is headquartered in the San Francisco Bay Area, with offices in Cambridge, New York, and London.

About Caraway
Caraway is a digital healthcare company for Gen Z providing mental, physical & reproductive healthcare services, all in one place. Caraway's experienced care team delivers 24/7 access to integrated, evidence-based care tailored to 18-29 year olds. In response to an unprecedented need for mental health resources and new barriers and persistent inequities in women's health, Caraway built an inclusive care platform that is instantly accessible, always available, comprehensive, and equitable. Caraway's services are designed for and centered around women and individuals who were assigned female at birth (AFAB), and personalized for all, so members can get the care they need when they need it. Caraway's healthcare services are available via its mobile app in the Apple App Store and on Google Play. For more information, visit us at Caraway.health and follow us on LinkedIn, Twitter, Instagram and TikTok.

SOURCE Caraway