Atlanta, GA / November 4, 2024 – Velocity Benefits, a cloud-based employee benefits enrollment platform, has closed a bridge financing round led by BIP Ventures, one of the most active VC funds in the Southeast. Velocity has been part of the BIP Ventures portfolio since 2023, initially as its legacy business EmpowHR. The bridge financing provides capital for Velocity to build the technology and capabilities necessary to capture a unique opportunity in the Benefits Administration market.
Velocity serves brokers, general agents, and carriers in the health and benefits business. The benefits market is undergoing necessary change. Historically, it has operated slowly and misused resources. Velocity is working to revolutionize the industry. By evolving into a tech-enabled, technology-facing company, they are solving administrative pain points like case building, education, and data extraction.
"Putting AI-enabled solutions in the hands of skilled technology experts inside a company with solid business fundamentals is a recipe for success," said Mark Buffington, Managing Partner and CEO of BIP Capital. "That combination is one of the reasons why we are excited about the continued investment in Velocity Benefits. They are solving real problems in the benefits space, and we're happy to support them in their efforts."
The funding allows Velocity to create a next-generation benefits administration platform and AI product set to enhance how cases are built, installed, and maintained. The company will also hire more technology experts to accelerate the pace of AI development and solutions they are building.
"Our partnership with BIP Ventures gives us the ability to identify and build resources to revolutionize the industry," said Joseph Duckett, founder of Velocity Benefits. "Instead of just improving the existing infrastructure, we are positioned to change it fundamentally. This investment marks a major shift in our mindset since partnering with BIP Ventures in 2023 with the merger with Empower."
About Velocity Benefits
Velocity Benefits, founded in 2018 in Atlanta, Georgia, is transforming the landscape of benefits administration and education through innovative technology. Committed to simplifying the complexities of health insurance, we equip general agents, brokers, and organizations with solutions that drive clarity and confidence in the benefits process. Velocity Benefits is dedicated to leading the industry with forward-thinking approaches and a client-centered focus on making benefits accessible, personalized, and efficient. For more information, visit Velocity-benefits.com or follow them on LinkedIn.
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