Chapter, a technology-driven Medicare advisory startup, has secured $75 million in new funding, elevating its valuation to $1.5 billion. The round was led by Stripes, a private equity and venture capital firm, and aims to enhance Chapter’s platform that assists seniors in selecting optimal Medicare health plans.
Founded by Vivek Ramaswamy, a former Republican presidential candidate, Chapter differentiates itself by prioritizing client needs over insurer profits. The platform analyzes various factors, including doctors, hospitals, and prescription drug coverage, to provide personalized plan recommendations.
The company’s early funding rounds saw involvement from notable figures such as J.D. Vance, who led Chapter’s Series A round in 2020 through his venture firm Naraya. Peter Thiel, another prominent investor, took over Vance’s board seat when Vance resigned to run for the Senate in 2021. Thiel has since stepped down from the board, with Democrat Donna Shalala, former Secretary of Health and Human Services, filling the vacancy.
Shalala emphasized that the company’s mission transcends political affiliations, stating that Ramaswamy’s role and investments from Republicans Vance and Thiel were not an issue. “I don’t think of the company as political,” she told Bloomberg.
With the new funding, Chapter plans to expand its services and further develop its technology to better serve the growing population of seniors navigating the complexities of Medicare. The company’s approach reflects a broader trend in healthcare towards personalized, technology-enabled solutions that prioritize patient needs.
