CoFi, Inc. announced it has closed on $3.5 million in seed funding to financially support its current customer base and an expansion into new eyecare practices.
Give me a refresh on the company.
Launched in 2021, the healthcare software platform is focused on delivering a multi-party payment platform for elective medical procedures, including in ophthalmology and optometry.
It works by having patients directly pay the providers of a procedure or healthcare service via a single payment event, enabling providers and surgical facilities to offer a premium payment experience.
Exactly how does the system work?
In eyecare, patients use the system to pay each provider of an elective ophthalmic procedure—the surgeon, ambulatory surgery center (ASC), and co-managing optometrist—separately via a single and compliant payment event at a surgeon’s office.
Learn how the system can be used for ophthalmologists, optometrists, and ASCs.
How does this differ from traditional payment methods?
Patients usually make multiple payments to a number of procedures at various points.
According to CoFi, surgeons may risk compliance issues by collecting for and remitting payment to their surgical partners. The process of payment separation avoids the potential for such allegations of non-compliance.
Gotcha. Now talk about this financing.
The company’s funding round was led by Las Olas Venture Capital (LVOC), a seed-stage lead investor venture capital firm.
Other investors included Synchrony Ventures, a consumer financial services company, as well as angel investors who previously invested in CoFi.
What else to know?
Synchrony’s investment into this latest round of funding for CoFi follows the companies’ recent partnership, announced in May 2023.Through the collaboration, Synchrony's CareCredit payment solution will now be integrated into CoFi’s platform for its 2,000+ eyecare professionals and ASCs using its network.
Essentially, this allows patients to use the CareCredit credit card to finance their consolidated care costs.
Tell me more about this CareCredit.
CareCredit allows patients to pay for out-of-pocket costs not covered by insurance (including co-pays, deductibles, or elective procedures).
Patients can apply and potentially be approved for a CareCredit credit card within minutes, according to Synchrony.
The system offers short-, long-term, and promotional financing options.
Any words from CoFi’s executives?
Sean Hanlon, the company’s founder and CEO, stated, “We look forward to growing our sales, marketing, and product teams to support our ophthalmology, optometry, and ambulatory surgery center (ASC) customers, as well as expand our presence throughout the vision space.”