Benepass raises $12 million

Employee benefits platform Benepass has raised $12 million in Series A funding led by Threshold Ventures, with participation from Modern Venture Partners, Operator Partners, and Alumni Ventures Group, as well as existing investors Gradient Ventures and Global Founders Capital.

Founded in 2019, the NY-based startup offers a different approach to employee benefits. Companies use Benepass to consolidate tax-advantaged accounts and perks and stipends onto a single platform for their employees. Each employee receives a Benepass Visa card with their benefits and a web portal and mobile app to track spending, check balances, and request reimbursements. Common stipends include wellness, professional development, meals, hybrid work, and recognition. The pre-tax suite includes Flexible Spending Accounts, Health Savings Accounts, and Commuter.

Companies can set rules for contribution, employee eligibility, and benefits coverage. Benepass will then categorize each transaction to make sure it falls under the approved categories without limiting employees to a specific provider. For example, an employee can use their $500 yoga stipend at any yoga facility.

“The future of work is flexibility. We built Benepass to help companies deliver an employee-led benefits experience focused on choice. Every employee’s experience with benefits should be meaningful, personalized, and delightful. At the end of the day, it’s about companies taking care of their people, their most important asset.” – Jaclyn Chen, co-founder and CEO of Benepass.

“Benepass is building the leading employee benefits platform for the future of wellness and work. In this new hybrid work environment, Benepass helps companies take care of their employees with benefits that range from meals to mental wellbeing, with a world-class user experience on a global scale. We are thrilled to partner with Jaclyn and the Benepass team to join them on this mission.” – Mo Islam, Partner at Threshold Ventures.