Digital health: Insurtech startup Noyo gets business from APIs - InsuranceUp

Digital health: Insurtech startup Noyo gets business from APIs

In the United States, the health insurance market is experiencing a great growth, but at the same time, it is still considered outdated and underperforming: the services offered by Noyo aim to solve this problem. The startup has raised capital for several million dollars

05 Feb 2021

The last $12+ million investment it raised last September, and it wasn’t the first one, startup Noyo appeals to investors as much as any tech company that has a good product, for business customers, in a market as boundless as health insurance. Founded in 2017, Noyo specializes in the business of APIs, application programming interfaces: simplified to the max, those segments of software that allow different software systems to communicate with each other (an effective explanation here). Many companies make their APIs public so that a given service of theirs can be integrated or complemented by others: Google, for example, makes available Google Maps APIs so that any developer can use them to build custom maps, to integrate them into their websites and offer geo-referenced search services or even use them in mobile apps and so on.

APIs are a fundamental support for digital transformation, and that’s why we talk about API economy.

In the case of Noyo, the startup’s value proposition, so far rewarded by early successes and investors, has been to create a platform for APIs and secure data exchange among healthcare entities, for example, between institutions and insurance companies, and between corporate HR and insurance carriers.

The startup basically sells the use of its APIs that allow customers to “execute, track and confirm the fulfillment of member transaction requests to managers,” according to the startup’s docs.

The product was spawned out of frustration Noyo co-founders Shannon Goggin and Dennis Lee faced while working for Zenefits, an HR tech unicorn that experienced problems with both lawmakers and customers.

The U.S. medical insurance market is indeed huge and far outdated, TechCrunch points out, and that’s why a solution like Noyo’s gets investor acceptance, as it makes available a technology which can very nimbly bridge a gap, without requiring companies to make challenging interventions in their legacy infrastructure. To date, it has raised $12.5 million with a Series-A investment round led by Costanoa Ventures and Spark Capital, complementing a previous seed of about $4 million. The startup aims to use the new funds to expand its team from 20 to 30 employees by early 2021.

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