Chapter, a Medicare advisory startup cofounded by Vivek Ramaswamy, announced on Wednesday it has closed on $75 million in Series D funding, at a valuation of $1.5 billion, backed by venture firm Stripes, and a number of private equity investors.
Ramaswamy, a biotech entrepreneur, was an early adviser to President Donald Trump’s second term and is a former Republican presidential candidate.
Chapter told Fast Company that while Ramaswamy helped found the company in 2020, “he stepped down from the board when he ran for office and is no longer involved in the company.”
What does Chapter do?
The platform helps the nation’s seniors navigate the Medicare system and choose a health plan, prescription drug coverage, find doctors and hospitalsall of which can be challenging for elderly Americans.
Navigating Medicare is needlessly complex. Too many people end up with plans that cost more and cover less than they should, Cobi Blumenfeld-Gantz, Chapter’s cofounder and CEO, said in statement. At a time when the regulatory environment and Medicare ecosystem is rapidly changing, we remain committed to bringing transparency and trust to a system that desperately needs it.
Blumenfeld-Gantz told Fast Company that its “mission is to provide unbiased, consumer-first Medicare guidance to all Americans” as Medicare insurance carriers continue to change their benefits structure, and as regulations have continued to be updated over the past five years.
The startup has at least historical links to the Trump administration, including to current Vice President JD Vance and tech billionaire Peter Thiel, who helped fuel Vance’s rise in politics. Narya Capital, which Vance founded before leaving to run for office, led Chapter’s Series A funding; Thiel has invested in the company, and at one time, held a seat on the board, according to TechCrunch.
Blumenfeld-Gantz said Vance has no involvement in Chapter.
It’s worth noting Ramaswamy was previously involved with the so-called Department of Government Efficiency (DOGE), along with Tesla CEO Elon Musk, which critics say could affect Medicare’s ability to perform business as usual.
The Department of Health and Human Services (HHS), which houses Medicare, is facing a massive overhaul, including staff layoffs, as DOGE slashes budgets and staff across federal agencies. At HHS alone, some 10,000 employees have been laid off, and combined with early retirements, the administration has slashed some 20,000 jobs, per CNN.
Meanwhile, HHS secretary Robert F. Kennedy Jr. will reportedly cut at least 300 jobs from the Centers for Medicare & Medicaid Services (CMS), which, among other programs, oversees Medicare and Medicaid for some 160 million Americans, as the administration tries to downplay the reduction and its effect on the Medicare, according to CNBC.
