Managing employee health benefits has traditionally posed significant challenges for small business owners. With the recent infusion of $6 million in funding, StretchDollar, an innovative startup, is poised to redefine this landscape.

Founded in 2023, StretchDollar is on a mission to simplify health benefits for small businesses, providing a stress-free, affordable, and effective solution for employers and employees alike.

The latest funding round, led by Fika Ventures and Oscar Health, includes contributions from Precursor Ventures and Springbank. This capital infusion follows StretchDollar’s $1.8 million pre-seed funding in the fall of 2023, bringing its total raised to $7.8 million.

The funds will drive the expansion of StretchDollar’s self-service platform, which enables small businesses to design health benefits plans tailored to their needs in just 10 minutes—for free.

The Positive Impact of StretchDollar at Scale

As StretchDollar scales, it has the potential to transform the small business landscape. By simplifying health benefits, the platform enables small businesses to attract top talent, boost employee satisfaction, and compete with larger companies.

Scaling StretchDollar could help bridge the gap for over 50% of small businesses currently unable to offer health insurance, improving access for millions of employees.

This would lead to healthier, more engaged workforces and stronger local economies.

Additionally, by streamlining benefits administration, StretchDollar empowers business owners to focus on growth, driving productivity and innovation across industries.

The company’s model could inspire broader changes in the healthcare and benefits sectors, creating lasting, positive change for businesses and employees nationwide.

A Simpler Solution for Complex Problems

For many small businesses, offering health benefits is an overwhelming and often unaffordable challenge. StretchDollar tackles this problem head-on with a platform that empowers employers to allocate pre-tax funds for employee health insurance premiums.

Employees, in turn, receive expert guidance to select individual plans that best meet their needs, all managed effortlessly through the platform.

“Small business owners didn’t start their companies to manage health benefits,” explains Marshall Darr, CEO and co-founder of StretchDollar. “It’s complicated and time-consuming. Our solution simplifies the process, offering employees more choice and saving employers hours of frustration.”

What Sets StretchDollar Apart?

At the heart of StretchDollar’s approach is the Individual Coverage Health Reimbursement Arrangement (ICHRA), a recently established IRS rule that allows employers to use pre-tax dollars to cover healthcare expenses.

StretchDollar streamlines the ICHRA process, addressing the most significant healthcare expense—insurance premiums.

By turning what was once a complex 100+ hour process into a 10-minute setup, StretchDollar makes health benefits accessible to businesses of all sizes.

This innovative approach is already winning over users, including Adam Treboutat, CEO of TNT Growth, who described the platform as “significantly more affordable” than his previous solution, with employees enjoying the freedom to choose their own plans.

The Growing Need for Small Business Health Solutions

Currently, more than half of small businesses in the United States don’t offer health insurance to their employees, often due to cost and administrative burdens. StretchDollar seeks to bridge this gap by offering a user-friendly and cost-effective solution.

“Many businesses with fewer than 50 employees simply can’t absorb the skyrocketing costs of traditional employer-sponsored plans,” notes Mark Bertolini, CEO of Oscar Health. “StretchDollar fills this void, providing a scalable and efficient way for employers to support their teams.”

Making Small Businesses the Best Place to Work

StretchDollar’s commitment goes beyond just solving a logistical challenge. The startup aims to transform small businesses into the best workplaces in the world, starting with affordable and approachable health benefits.

The company’s founders—veterans of Gusto and the health insurance industry—bring deep expertise to their mission. With headquarters in San Francisco and Pittsburgh, StretchDollar is focused on serving the millions of small businesses across the U.S.