Israeli start-up raises $47M for AI that helps grieving individuals
What's the story
Empathy, an Israeli start-up, has secured $47 million in funding for its unique AI platform. However, the tool doesn't create videos from text prompts or replace software engineers. Instead, it assists people in coping up with sorrow. The Series B equity round was led by Index Ventures and included participation from several major insurance companies including MassMutual Ventures, MetLife, New York Life, Securian, and Sumitomo. This newly raised capital will be utilized to further develop tools and redefine bereavement care.
When in grief
Empathy's AI platform aids in practical aspects of bereavement
Empathy's platform combines artificial intelligence and human guides to assist individuals with various aspects of the bereavement process. The services range from counseling and writing obituaries to automating the closure of deceased individuals' cloud services and managing complex financial affairs. CEO Ron Gura has indicated that future enhancements may include more AI tools to guide users through the 'what's next' stages of organizing post-death tasks.
Market opportunities
Empathy's growth and market presence
Empathy, founded in Israel, has primarily focused on the US market and provides services through insurance companies and employers. The start-up currently serves around five million employees and 35 million policyholders. The company's total funding now stands at $90 million, with a valuation nearing $400 million. Despite not disclosing its valuation officially, the start-up continues to expand its research and development operations in Israel.
Perfect timing
Empathy's timely launch amid pandemic and venture funding peak
Empathy was launched in the US in 2021, during a time when mortality was at the forefront of people's minds due to the COVID-19 pandemic. This period also coincided with a peak moment in venture funding, enabling Empathy to swiftly secure two rounds of funding within its launch year: an initial $13 million followed by an additional $30 million five months later.
Findings
Empathy's personal connection to bereavement challenges
Empathy was born out of Gura's personal experience with bereavement. After facing the daunting task of managing practicalities during his own time of grief, Gura, a serial entrepreneur with previous senior roles at WeWork and The Gifts Project (which he sold to eBay), recognized the need for a service like Empathy. He stated that while he knew much about grief, he had little knowledge about estate planning, which inspired him to create the platform.