Growth equity investment firm Edison Partners today announced leading a $25M growth investment in Dallas-based Take Command, an end-to-end individual healthcare benefits platform for small and mid-market employers. Take Command will use the funds to expand sales and marketing, build out its customer-experience driven technology platform, innovate new marketplace offerings and grow transformative partnerships.
In the $1.6 trillion group health insurance market, traditional group plans are limiting for employees and costly for employers. The rise of a modern and distributed workforce has paved the way for individual market plans that can be personalized to each employee. Take Command helps employers administer individual coverage health reimbursement arrangements (ICHRAs) using a tax-free stipend that lets employees select the best health plan while mitigating cost increases and bringing 10% to 20% cost savings to employers.
“Take Command’s end-to-end health insurance platform has made it a dominant player in the ICHRA market,” said Gregg Michaelson, General Partner, who led the investment and joins the company’s board of directors. “We’re impressed with the company’s growth trajectory, and confident in Jack Hooper and his executive team’s ability to capitalize on ICHRA tailwinds with large employers and build a defined contribution marketplace that unlocks the next generation of benefits.”
The total addressable market for ICHRAs is estimated to be growing at a compounded annual growth rate of 19% and will be $4.1B by 2027 according to consulting firm Alphavate. While Take Command already leads the small and middle market segments for administering ICHRAs, large employers are now the company’s fastest growing segment, along with businesses being introduced through partnerships. The number of employees on the Take Command platform has grown 60% year-over-year for the past two years while the company’s average revenue growth rate has been 100% over the past three years.
“As healthcare costs continue to rise, our full stack approach to offering ICHRAs will continue to disrupt group health insurance,” said Jack Hooper, founder and CEO of Take Command. “We’re grateful to Edison Partners for this investment, and excited to leverage the Edison Edge to further define and accelerate our go-to-market strategy, deliver innovative offerings, and forge new partnerships to become the industry leading defined contribution platform for health insurance.”
Take Command is the twelfth investment from Edison X, adding to other active healthcare technology investments, including Capital Rx, Lokavant, PurpleLab, Virtual Health and Zelis Healthcare. Since its inception in 1986, Edison has invested in more than 260 companies, 40 of which have been in the healthcare technology industry.
About Edison Partners
Edison Partners is a leading growth equity firm providing the financial and intellectual capital that CEOs and their executive teams need to grow and scale their companies. The firm’s team brings more than 275 years of combined investing, operating and sector experience to each investment, accessible via the Edison Edge value creation platform, which is tailored to each business’ strategy, stage and operating needs. Edison targets high-growth financial technology, healthcare IT and vertical SaaS and marketplace companies located outside Silicon Valley with $10 million to $30 million in revenue. Investments also include buyouts, recapitalizations, spinouts, and secondary stock purchases. Named as a Top Growth Investment Firm by GrowthCap for two years running, Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners manages $1.6 billion in assets. For more information on Edison Partners, please visit edisonpartners.com and follow on LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230919140638/en/