Hometeam Raises $27 Million Series B To Ramp Up Home Care Platform

 

New York City-based startup Hometeam announces that it has closed a $27 million Series B funding round led by Oak HC/FT, with additional participation from returning investors IA Ventures, Lux Capital, and Recruit Strategic Partners. The funding follows an $11 million Series A that closed in July 2014, bringing Hometeam’s total funding level to $38 million since its 2013 launch. Founded by a 26 year-old Silicon Valley transplant with programming experience but no healthcare background, the startup is working on software that supports the $80 billion in-home senior care market. Founder Josh Bruno notes that his motivation for starting the company came after his family struggled to pair his 93 year-old grandfather with a quality caregiver.

Bruno had been working at Yahoo, and then Bain Ventures, before starting Hometeam. He left Bain to volunteer at homecare agencies to better understand the placement process for caregivers, and to develop an insider’s perspective of the industry at large. After working at more than a dozen agencies, Bruno began coding on his flagship product, a platform that takes a more analytical approach to pairing volunteer caregivers with seniors, and then supports caregivers as they begin working with their patients and communicating with the families. Hometeam recruits, trains, and fields its own staff of caregivers, operating in the New York, New Jersey, and Pennsylvania areas. Backing up each caregiver is a team of experts from the in-home senior care industry, including a care advisor, care coordinator, and registered nurse. Caregivers at Hometeam are also well compensated, averaging 30 to 50 percent more than others working in the same region, and bringing in full benefits. Hometeam monetizes its business by paying caregivers an average of $15 per hour, while charging clients between $20 and $27 per hour.

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As the startup of a Silicon Valley computer scientist, Hometeam has a distinctly techie vibe to it. Caregivers are matched with families based on a self-developed algorithm that considers a wide variety of criteria that attempts to maximize the likelihood of a successful match. Caregivers document their visits on an iPad app that provides family members with an easy-to-understand view of the patient’s daily activities and overall health. Unlike many digital health startups, the company’s new funding will not be used to ramp up development efforts, but instead will be used to expand its presence and increase its market share in existing areas of operation.


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