Truemed raises $34 million Series A to route HSA and FSA dollars to lifestyle health
Andreessen Horowitz led the Austin fintech's round as it expands access to tax-advantaged spending for preventive products.
AUSTIN — Truemed, whose payments technology lets eligible consumers spend Health Savings Account and Flexible Spending Account funds on preventive, lifestyle-based products, has closed a $34 million Series A, the Austin company announced in December.
The round was led by Andreessen Horowitz, with participation from Bessemer Venture Partners, Long Journey Ventures, BoxGroup and Trust Ventures. Truemed works with brands including Peloton, Eight Sleep and Nike Strength, letting qualified buyers apply pre-tax dollars at checkout.
The company says it has tripled revenue year over year for two consecutive years and will use the new capital to expand its merchant network and platform.
Why it matters
Truemed is wedging into the seam between healthcare reimbursement rules and consumer commerce — a regulatory gray zone that, if it holds, unlocks a large pool of tax-advantaged spending for wellness products. A lead check from a16z gives the model serious validation and adds to Austin's growing roster of fintech-meets-health startups.
The durability of Truemed's growth will hinge on how regulators and the IRS treat the expansion of qualifying medical expenses into lifestyle categories.
Reported by Next in Austin. Based on reporting from PR Newswire.
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