Lynx secures $27M for consumer directed health initiatives 

Boston-based fintech company Lynx, which aims to simplify healthcare payments and administration, announced it closed an oversubscribed $27 million Series A funding round.The funding brings the company’s total raise to more than $44 million since it launched in 2022. The round was led by Flare Capital Partners, with participation from CVS Health Ventures, McKesson Ventures and existing investors 406 Ventures, Obvious Ventures and Frist Cressey Ventures.WHAT IT DOESLynx is an application programming interface (API)-first fintech platform that manages healthcare payments and administration. API-first is a software development strategy that prioritizes the design of an application’s API before writing any code.Lynx’s platform gives health plans, financial institutions and benefits administrators the means to embed a suite of healthcare financial accounts and services into their existing user experiences.The company will use the funds to scale operations and accelerate its growth in the areas of Medicare Advantage supplemental benefits, Medicaid value-added benefits and individual coverage health reimbursement arrangement, and consumer directed health account administration and compliance capabilities.It will also develop API products aimed at improving the consumer experience and operations for benefits administrators and health plans. “In a fragmented healthcare payments landscape, Lynx is the only platform that supports all healthcare payment types and use cases—from large, established markets like CDH administration to emerging markets like ICHRA and Medicare Advantage supplemental benefits,” Victor Lanio, partner at Flare Capital Partners, said in a statement. “This oversubscribed round is a testament to Lynx’s exceptional traction, visionary leadership, and the growing demand for a truly unified solution. We look forward to being a part of the Lynx story as they continue redefining the healthcare payment and administration space.”MARKET SNAPSHOTOther companies in the healthcare payments space include InstaMed. In 2024, Greenway Health launched Greenway Health Pay powered by InstaMed, which provides practices and patients tools aimed at simplifying the patient payment process. In 2022, healthcare tech company NextGen partnered with InstaMed  with the aim of modernizing payment processing through NextGen Pay powered by InstaMed. Simplee is a healthcare technology platform that handles digital payments. The company’s platform leverages information from billions of patient interactions and proprietary healthcare-tuned algorithms to drive a recommendation engine for patient payments and engagement. In 2020, Flywire, a vertical payments company, acquired Simplee. Other companies in the healthcare fintech space include Missouri-based Paytient, which secured $40.5 million in Series B funding in 2023, bringing the company’s total raise to $63 million. The funds included $33 million in equity from new and existing investors and $7.5 million in