Employee benefits navigation startup Pasito launches with $3.25m in funding
Google, Y Combinator, and Core Innovation Capital among investors in startup aiming to simplify workplace benefits
By: Pasito, Inc.
To support this effort, the New York-based company announced it raised $3.25 million in seed funding with participation from Google, Y Combinator, Core Innovation Capital and FiDi Ventures. Strategic angels from insurance, healthtech, and SaaS also participated in the round, including the founders of Dropbox, Simply Hired, Namely, Bennie, and Papa. The additional funding will be used to drive product development, additional data and HRIS integrations, and hire engineering resources.
Pasito's technology integrates directly with a company's HR systems and processes census, health, financial, and family data to guide employees through benefits selection and engagement throughout the year. Employees save thousands of dollars on average every year optimizing their benefits, while companies drastically cut wasted benefits spending. A company with 1,000 employees can reduce up to $1 million in wasted spend every year.
Companies are scrambling to find ways to reduce healthcare costs while balancing employee demand for better benefits in a tight labor market. "The rise in healthcare premiums is unsustainable for companies," said Pauline Roteta, Co-founder and CEO of Pasito. "Through Pasito, not only do companies save money on their benefits program, but their employees also save their hard-earned money, while experiencing a superior benefits experience throughout the year."
From knowing what plan to choose to keeping up with preventative health screens, employees are overwhelmed. 61% of employees elect into health benefits they don't use, and undercontribute to tax-advantaged accounts. Less than 10% of employees complete their preventive health screens and nearly 20% use out-of-network services. This leads to overspending by companies from wrong plan elections, out-of-network claims, emergency care use, compliance, and employee dissatisfaction. Pasito is empowering employers to redirect their savings to deliver a better experience for employees.
Pasito is led by founders with deep experience in data, risk, and growth. Pasito Chief Executive Officer Pauline Roteta is a Certified Financial Planner® with experience at BlackRock. Chief Technology Officer Ignacio Ampuero played a key role building Amazon Alexa's knowledge graph at Graphiq (acquired by Amazon). Chief Growth Officer Julie Scotland led growth at MyCase (acquired) within AppFolio (IPO). Pasito's advisors include founders and experts within the health, insurance, finance, HR, and technology sectors.