Levela New York-based employee benefits startup founded in 2018, has closed its doors, saying it retained a small team to help customers.
The business closed abruptly after efforts to find a buyer failed, according to The Information. reported Thursday, January 2, citing an email from Level CEO Paul Aaron to customers.
“Unfortunately, the deal fell through at the last minute due to external challenges beyond our control,” the email said, according to the report.
According to the report, Aaron said in the email that benefit plans extending beyond the end of 2024 would end at the end of January and that no new benefit plans would not be proposed for 2025. complaints for existing plans can be submitted until the end of January, and all plan funds will be returned to customers on or shortly after January 31.
Level did not immediately respond to PYMNTS’ request for comment sent via LinkedIn.
A recorded message to the company’s member and supplier support phone number on Tuesday indicates that Level has decided to cease operations, effective immediately, with a small team in place to assist customers.
When it announced in April 2021 that it had raised $27 million in a Series A financing cycleLevel said it aims to help employers offer “greater benefits at lower costs,” starting with dental and vision insurance.
“We believe paying with insurance should be as easy as making any other purchase,” Aaron said in a press release at the time. “So we are rebuilding insurance from the ground up, from flexible networks to real-time claims. We help employers and employees get the most out of their benefits.
In another separate incident, an online accounting and tax filing platform Bench Accounting declared on December 27 that it was abruptly stop its platform, but then said on Monday (Dec. 30) that it was being acquired by Employer.com.
As of September, Bench had more than 12,000 small business customers.
Employer.com, a new company focused on human resources technology, said Bench customers will be allowed to keep their service under the new ownership or transfer their data.
Bench said in a statement: “Your service will continue seamlessly with the platform you have always trusted. »