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MedZERO provides a digital platform that offers employees immediate access to interest-free and fee-free funds to cover their out-of-pocket medical expenses. This solution enables individuals to manage healthcare costs by facilitating payments over time directly from their paycheck, aiming to alleviate financial stress associated with unexpected health expenditures. The company integrates with existing payroll systems to streamline the process of accessing and repaying funds.
The company was established in late 2017 as a collaboration between Mobile Capital Group and Sortis Holdings. Co-founders include Craig Froude, who serves as CEO, and Michael Sobek, the CSO. Their foundational insight stemmed from the recognition that the prevailing healthcare payment system placed an unsustainable burden on employees, leading to widespread financial instability and negatively impacting the broader healthcare ecosystem.
MedZERO serves employers by offering their workforce a critical financial wellness benefit, enhancing access to necessary medical care. The company’s long-term vision centers on transforming how individuals finance healthcare, working to ensure that employees can afford and access medical services without incurring high-interest debt or facing significant financial strain, thus fostering a healthier and more financially secure workforce.
MedZERO has raised $15.0M across 2 funding rounds.
MedZERO has raised $15.0M in total across 2 funding rounds.
MedZERO has raised $15.0M across 2 funding rounds. Most recently, it raised $9.0M Seed in October 2022.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Oct 1, 2022 | $9M Seed | — | Endeavor Catalyst, Grand Ventures, Intel Capital, Mango Capital, True Ventures | Announced |
| Dec 1, 2021 | $6M Seed | — | Intel Capital, Mango Capital, True Ventures | Announced |
MedZERO has raised $15.0M in total across 2 funding rounds.
MedZERO's investors include Endeavor Catalyst, Grand Ventures, Intel Capital, Mango Capital, True Ventures.
medZERO is a healthcare-focused fintech company headquartered in Portland, Oregon, that provides employers with a platform enabling employees to access interest-free financing for out-of-pocket healthcare expenses like deductibles, co-pays, co-insurance, dental, pharmacy, and orthodontia costs.[1][2][3][4] The platform supports any health plan or provider, uses bank-grade technology akin to PayPal and Amazon, and allows repayment via payroll deduction—often pre-tax through Health Savings Accounts for up to 30% savings—reducing employer costs via lower absenteeism, better retention, and optimized benefits usage.[1][2][3] With over 100 years of combined management experience and $5.7M in funding from investors like True Ventures and Village Global, medZERO targets employee financial wellness amid rising deductibles, reporting $5.8M revenue and under 25 employees.[1][4]
medZERO was formed in late 2017 as a venture between Mobile Capital Group Inc. (Kansas City) and Sortis Holdings Inc. (Portland, Oregon), focusing on patient payment solutions to cut healthcare delivery costs nationally.[3] Co-founder and CEO Michael Sobek, with experience launching Sprint broadband, banking, and prepaid card services at StoreFinancial (now EML Payments), identified the need for a "safety net" as deductibles soared into thousands annually, burdening employees and employers.[3] Early traction included selection for the Launch Health Accelerator by Nueterra and LaunchKC in 2019, highlighting its mobile lending platform for instant 0% APR loans repaid over 6-12 months via payroll, with minimal admin and virtual Mastercard issuance.[3] Sortis rolled it out across its lifestyle and hospitality brands in 40 locations, building momentum in employee benefits.[4]
medZERO rides the fintech-healthcare convergence trend, addressing U.S. healthcare's high out-of-pocket costs—exacerbated by rising deductibles—and infertility/reproductive challenges affecting 1 in 6 couples, as highlighted in its 2025 National Infertility Awareness Week support.[2][5] Timing aligns with AI's rise in personalized wellness, launching AI capabilities in 2025 to blend financial decision-making with care access amid post-pandemic retention pressures on employers.[2] Market forces like employee demands for financial stability favor it, influencing the ecosystem by setting standards for benefits innovation, similar to investor-backed successes (Peloton, Fitbit), and expanding via partnerships like Sortis.[1][3][4]
medZERO is poised to scale its AI strategy, launching initial features in 2025 for predictive cost-saving and journey-wide support, potentially capturing more mid-market employers amid wellness fintech growth.[2] Trends like AI-driven personalization and pre-tax financing will shape it, evolving its influence from niche lender to comprehensive healthcare wallet, especially for underserved areas like infertility.[2][5] As deductibles climb, expect deeper VC-fueled expansion and integrations, amplifying its role in affordable care—echoing its founding mission to empower employees and employers over escalating costs.[1][3]
