Lively, the startup dealing with health savings accounts, has raised $4.2 million capital to add investment capabilities with an integration with TD Ameritrade, which will be available to all Lively HSA holders. The strategy is to introduce a kind of investment that’s been available to the traditional finance community, but in a more seamless way to continue growing into a one-stop shop for HSA. The firm raised the capital from a bunch of investors including Transmedia Capital, Streamlined Ventures, Y Combinator, SV Angel, Kevin Durant and Rich Kleiman’s The Durant Company and a laundry list of others.
Shobin Uralil, co-founder of Lively, commented that “The beauty of the HSA, with an HSA you can access the money at any time if you’re using it for qualified medical expenses. The 401(k), if you access your money before retirement, you get dinged. If you think about it, I would argue that if you are eligible to open an HSA you would want to max out your contribution before your 401k. It grows through investments tax-free just like a 401(k), but unlike that, you can access your HSA money at any time”.
The startup aims to give users the ability to open a health savings account with a high deductible health plan, and make it easier to get that money in and out of the account to pay for deductibles. It boils down to two products: a tool for employers to give their employees health savings accounts and manage contributions and payroll; and an account for end-users that’s free to set up and get an HSA up and running.