PayZen Valuation, Funding & Investors

PayZen is valued at $1.2B as of August 2024.

Last PayZen valuation

$1.2B

Series B · Aug 2024

Last PayZen funding round

$32M

Series B · Aug 2024

Cumulative funding PayZen raised

$72M

across 4 funding rounds

Key investors in PayZen

  • Picus Capital
  • SignalFire
  • 7wire Ventures
  • Viola Ventures
  • Lorimer Ventures
  • Link Ventures

PayZen Overview

About PayZen

PayZen is a San Francisco-headquartered healthcare fintech launched in 2019. It offers smart medical payment plans and non-recourse financing for patient out-of-pocket bills. The platform improves outcomes for providers and patients by enabling convenient installment options at payzen.com.


Founded

2019

HQ

United StatesSan Francisco, CA

Website

payzen.com

Status

Privately held

Customer focus

B2B & B2C

Revenue model

Commission

Valuation

$1.2B (Aug 2024)

PayZen Valuation

PayZen is currently valued at $1.2B, based on its Series B in August 2024.

The $32M round was led by New Enterprise Associates, with participation from SignalFire, Viola Ventures and 7wire Ventures.

PayZen valuation by funding round

PayZen valuation by funding round
DateStageValuation
Aug 2024Series B$1.2B

PayZen Funding History

PayZen has raised a total of $72M across 4 funding rounds.

PayZen's first fundraising round was a $5M seed round in February 2021. The most recent completed round was a $32M Series B in August 2024.

PayZen funding rounds

PayZen funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Aug 2024Series BNew Enterprise Associates (lead); SignalFire; Viola Ventures; 7wire Ventures$32M$1.2BPayZen is a healthcare fintech company founded in 2020 and headquartered in San Francisco (with operations in Tel Aviv), developing an AI-powered platform that provides interest-free, personalized patient financing solutions, branded as 'care now, pay later,' integrated with EMR/EHR systems like Epic to simplify payments and boost collections for health systems and providers. On August 13, 2024, PayZen announced an oversubscribed Series B round totaling $232M, comprising $32M in equity led by New Enterprise Associates (NEA) with participation from existing investors including 7wireVentures, SignalFire, Viola Ventures, and others, alongside a concurrent $200M credit warehouse facility from Viola Credit and insurance syndicates to fuel product development, team expansion, global scaling, market growth, and new AI solutions addressing patient affordability. The equity round valued PayZen at $1.2B post-money according to one report, while others indicated over $200M or upward of $200M, more than doubling from the prior round; NEA's Mohamad Makhzoumi joined the board. PayZen has raised approximately $72M in prior equity (including a $20M round in 2022) plus this latest, bringing total capital to around $472M including debt, with 11 investors overall. The company serves over 60 health systems and physician groups like Geisinger and CommonSpirit, projecting cash-flow positivity by 2025. Traction includes 6x year-over-year revenue growth for the last two years (2022-2024), 100% customer retention, 132% net retention, and providers increasing patient collections by 23-35% on average. PayZen positions itself as a category leader disrupting healthcare payments amid U.S. affordability challenges, with plans to automate provider-patient frictions and expand in Israel.
Nov 2022Series B7wire Ventures (lead); Link Ventures; SignalFire; Picus Capital; Lorimer Ventures$20M-PayZen is a healthcare fintech startup founded in 2020 that uses AI-powered technology to personalize patient payment plans and make healthcare more affordable. The company's platform leverages proprietary machine learning models and integration with electronic health records systems to streamline payment processes for health systems and patients, enabling a 'care now, pay later' model. In its Series B funding round announced on November 15, 2022, PayZen raised $20 million in equity financing led by 7wire Ventures, with participation from existing investors including SignalFire, Viola Ventures, Link Ventures, and Picus Capital. The company simultaneously secured a $200 million warehouse credit facility from Viola Credit and a syndicate of insurance companies to support market expansion. While the company's specific post-money valuation for this round was not publicly disclosed, sources indicate the valuation had more than doubled from the previous Series A round. PayZen reported strong operational metrics at the time, including 6x year-over-year growth, 100% customer retention, and 132% net retention, while working with approximately 60 health systems including Geisinger and CommonSpirit. The company projected it would achieve cash-flow positive status within the following year and reported that providers using PayZen increased patient collections between 23% and 35%.
Nov 2021Series ASignalFire (lead); Link Ventures; Viola Ventures; 7wire Ventures; Picus Capital; Lorimer Ventures$15M-PayZen is a healthcare fintech providing AI-powered, zero-interest patient financing solutions to help hospitals and health systems offer affordable payment plans. The platform analyzes patient financial data to create customized payment schedules with no fees, improving enrollment and collection rates for providers. Geisinger, a major health system, reported 82% patient enrollment and 23% increase in payment collection after implementing PayZen. PayZen raised $15 million in its Series A round on November 16, 2021, led by SignalFire with participation from Link Ventures, 7wireVentures, Viola Ventures, and Picus Capital, bringing total funding to $20 million including a prior $5 million seed. Funds supported product expansion, marketing, business development, and AI enhancements for underwriting using financial, medical, and alternative data. The round addressed growing demand amid medical debt issues, with 87% patient enrollment and 40% payment adherence improvement. PayZen targeted the U.S. healthcare affordability crisis, where medical debt affects 79 million Americans and leads to delayed care. Following the Series A, the company pursued rapid growth, raising a $220 million round in 2022 with monthly revenue doubling.
Feb 2021SeedTWO39 Ventures; Picus Capital$5M-PayZen emerged from stealth with a $5 million seed funding round backed by Picus Capital, TWO39 Ventures, and others, having been incubated by Viola Ventures since 2019. The San Francisco-based company provides a 'care now, pay later' platform, paying hospitals upfront for patient invoices and offering patients zero-interest, fee-free payment plans. It deploys AI to create personalized repayment plans integrated into providers' revenue cycle management systems. PayZen partners with revenue cycle management vendor RMS and digital health company Vim to reach healthcare providers and patients nationwide. The platform claims to increase hospital collections by 50% while addressing patient affordability challenges for out-of-pocket medical expenses. Following the seed round, PayZen raised a $15M Series A in November 2021 led by SignalFire with participation from Link Ventures, 7WireVentures, Viola Ventures, and Picus Capital, bringing total equity raised to $20M.

Who has invested in PayZen?

8 investors have backed PayZen across its funding rounds, including Picus Capital, SignalFire, 7wire Ventures, Viola Ventures, Lorimer Ventures and Link Ventures.

Lead investors include New Enterprise Associates, 7wire Ventures and SignalFire.


PayZen Investors

Investors in PayZen by funding rounds participated
InvestorHQRoundsRoleFirst check
SignalFireUnited StatesSan Francisco, CA3LeadNov 2021
7wire VenturesUnited StatesUnited States3LeadNov 2021
Picus CapitalGermanyMunich3ParticipantFeb 2021
Link VenturesUnited StatesUnited States2ParticipantNov 2021
Viola VenturesIsraelHerzliya2ParticipantNov 2021
Lorimer VenturesUnited StatesNew York City, NY2ParticipantNov 2021

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PayZen Competitors

PayZen competitors include listed companies like GoodRx, Clover Health and WEX, and private ones like DailyPay, Flex and Stedi.

Public and private companies comparable to PayZen
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
GoodRxUnited StatesUnited StatesPublicly listed$797M$173M$1.2B1.8x
DailyPayUnited StatesNew York City, NYPrivate$235M-$1.8B7.8x
Clover HealthUnited StatesUnited StatesPublicly listed$1.9B($84M)$2.4B0.8x
FlexUnited StatesSan Francisco, CAPrivate--$250M-
WEXUnited StatesUnited StatesPublicly listed$2.7B$992M$6.7B2.1x
StediUnited StatesNew York City, NYPrivate--$200M-

PayZen Public Comps

PayZen is still privately-owned, but its public comps include GoodRx, Eurowag, Hapvida, Valu, Zip, Evolent Health, High Templar Tech, Progyny, Value HR and Net Protections Holdings.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
GoodRx$797M$173M1.8x1.8x8.1x5.5x
Eurowag$2.7B$119M0.5x3.0x10.3x7.5x
Hapvida$6.1B$787M0.3x0.3x2.7x4.0x
Valu$108M$22M4.1x7.0x20.2x-
Zip$951M$296M3.8x3.6x12.2x18.3x
Evolent Health$1.9B($365M)0.7x0.5x(3.5x)9.4x
High Templar Tech$6M($38M)----
Progyny$1.3B$90M1.4x1.4x20.6x8.0x

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Common questions about PayZen

When was PayZen founded?PayZen was founded in 2019.
Where is PayZen headquartered?PayZen is headquartered in San Francisco, CA, United States.
Is PayZen publicly listed?No, PayZen is a private, VC-backed company.
What is PayZen's valuation?PayZen was last valued at $1.2B in its Series B in August 2024.
How much funding has PayZen raised?PayZen has raised $72M across 4 funding rounds.
What was PayZen's last funding round?PayZen's last funding round was a $32M Series B in August 2024, led by New Enterprise Associates.
Who are PayZen's investors?PayZen's investors include SignalFire, 7wire Ventures, Picus Capital, Link Ventures, Viola Ventures, Lorimer Ventures, TWO39 Ventures and New Enterprise Associates.
Which companies are comparable to PayZen?Companies comparable to PayZen include GoodRx, DailyPay, Clover Health, Flex, WEX and Stedi.

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