Catch works to ensure that gig workers have the retirement and health benefits they deserve.The company is currently moving its headquarters from New York to sell health insurance, retirement savings plans, and tax withholding directly through freelancers, contractors, or anyone else who is not covered.It now has a new round of $12 million Series A funding. This was led by Crosslink with participation from Khosla Ventures. NYCA Partners, Kindred Ventures, and Urban Innovation Fund. The money will be used to support distribution partnerships and the company's relocation from Boston.Catch was founded by Kristen Anderson, Andrew Ambrosino and raised $6.1million in the past to fund its initial funding of $18.1 million.The Catch team of fifteen took nearly two years for approvals to sell the platform in 38 states via the federal marketplace. Anderson claims that this is the first time Anderson has seen eight companies do it, and three of them Catch are authorized to offer benefits to consumers.Anderson explained to TechCrunch that more companies do not offer healthcare and more people are joining creator or gig economies. This means that more people aren't following an employer-led model.Average Catch customers are 32 years old. They also asked for help in setting up income sources such as saving money for retirement, taxes and medical leave.Many Catchs customers saw their earnings drop 40% across all industries when the pandemic struck. In some cases, workers such as hairdressers and cooks saw their income fall to zero.Anderson and Ambrosino started looking into partnership distribution. They created a network that included platforms, business facilitation tools and payroll companies interested in offering Catch. Anderson stated that the company plans to use some of this funding to expand its workforce to support these partnerships and pursue more.Anderson stated that Catch is the only startup offering insurance products. Many of its competitors offer a single product and do it well. Starship, for example, does health savings accounts and offers insurance products. Catch offers a platform experience but goes deep into the process. It's similar to Gusto which offers cloud-based payroll and benefits for businesses. However, Catch is a holistic experience that focuses on the individual.The company's user base has tripled in the last year due to people working second jobs and a partnership with DoorDash. Anderson stated that platform users have five times the usual balances because they are setting higher goals and need to save more. Similar growth has been seen in retirement investments and health insurance.Anderson said that she is already considering a Series B for the future, but it won't happen until at least two years later. Anderson is currently looking at its HSA product, as well as other products, to differentiate it from other startups like Super.mx, Even, and Spot.Catch also wants to reach a wider audience than the federal market. Anderson stated that there are a few companies that offer medical benefits at prices that seem too good to true. However, customers need to read the fine print to find out that not all medical conditions are covered.Anderson said that we are trying to figure out how to make it clearer. Young people have more options than older generations, but they must be aware of what they are buying.
