A marketplace that allows Americans to use tax-advantaged healthcare funds on fitness and wellness items, Truemed works with brands including Peloton and Eight Sleep
Truemed has closed a $34 million Series A funding round to grow its marketplace, which allows users to draw from Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) directly at checkout for qualifying purchases, including on top fitness, wellness and preventative health products.
Venture capital firm Andreessen Horowitz led the funding round, with participation from Bessemer Venture Partners, Long Journey Ventures, BoxGroup and Trust Ventures.
Truemed works with thousands of products from major fitness and wellness brands including Peloton, Eight Sleep, Nike Strength and 24 Hour Fitness. The majority of its users take advantage of the products to support health concerns like early heart disease, mental health, chronic pain and metabolic health conditions, according to the platform.
“HSAs and FSAs are one of the most effective tools available for addressing chronic illness and obesity, and should soon be as ubiquitous as a 401k,” said Truemed co-founder and CEO Justin Mares. “Combining the world’s top portfolio of preventive products with a tech solution for the HSA/FSA process will help us go beyond a focus on sick care to making preventive lifestyle interventions an everyday approach.”
Fitness and wellness is becoming an increasingly popular sector for HSA and FSA use. Flex, which works with brands including Therabody, NordicTrack and Pilates equipment maker Balanced Body, closed on a $15 million funding round in September to expand its HSA/FSA payments platform.
Truemed, meanwhile, has experienced 3x year-over-year revenue growth for the past two years. Its Series A round will go toward building out its products and portfolio, and growing consumer awareness about access to lifestyle interventions through HSAs and FSAs.
The company was originally co-founded by Calley Means, an entrepreneur and senior advisor for the U.S. Department of Health and Human Services under Robert F. Kennedy Jr.
Truemed confirmed to Athletech News that Means has divested from the company amid his role in Washington, D.C., and signaled that it doesn’t want to be known for endorsing any particular political viewpoints.
“Health shouldn’t be a political topic, and we believe that everyone should be properly using these tax-advantaged accounts that the government started 20-plus years ago,” the company told ATN in a statement.
