Abby Care raises $82M to pay family members as caregivers
What's the deal? Abby Care, a home care startup that trains family members to become certified, paid caregivers, has raised an $82 million Series C led by Transformation CapitalDealroom has a profile for this one. Try Dealroom →. New investors CVS Health VenturesDealroom has a profile for this one. Try Dealroom →, Frist Cressey VenturesDealroom has a profile for this one. Try Dealroom →, and Pivotal VenturesDealroom has a profile for this one. Try Dealroom → joined, while existing backers Khosla Ventures, Thrive Capital, and Sequoia doubled down.
What's the endgame? Founded in 2022 by chief executive officer Havi Nguyen, Abby Care operates as a Medicaid provider and works with health plans to arrange care at home. Its model trains family members already living with patients to deliver care, then supports them long term.
Why now? The US health care workforce faces burnout and labor shortages, and the gap for home-based care is wide. "A traditional private duty nurse program only fills 65% of authorized shifts, which is crazy," said Justin Brock, general partner at CVS Health Ventures. "Meanwhile you have these tens of millions of family caregivers who are in the home, and a lot of them are already doing care."
Nguyen traces the idea to her own childhood, translating at doctor's appointments and managing Medicaid paperwork for her family after they immigrated from Vietnam. Later, working at an autism therapy startup during COVID, she saw too few therapists and high turnover. "Parents were always willing to raise their hand and step up," she said.
What could go wrong? Brock noted Abby Care faces many possible competitors, from existing home health agencies to caregiver education platforms. Its success depends on aligning patients, regulators, health plans, and family caregivers at once.
The signal: At $82 million, the round lands in the upper tier of startup financings — a sign investors see scale in turning informal family care into paid, certified labor. "The companies that are really going to be able to succeed are companies that can think about designing the care model that brings all the stakeholders and the U.S. health care system together," Nguyen said.
Read more: fortune.com
Image credit: agilemktg1
