Upside, a housing stability platform partnering with health insurers, announced Thursday that it raised $20 million in Series A funding.
The company’s AI-powered platform helps payers and employers identify members experiencing housing instability and pairs them with social workers and housing specialists. The company can then support them in finding housing, which helps reduce emergency medicine utilization. It serves Medicaid, Medicare Advantage, Dual Eligible Special Needs Plans, commercial and employer-sponsored populations.
“Housing instability is one of the most expensive and persistent drivers of avoidable healthcare costs and Upside is building the infrastructure that transforms one of the most basic needs into a measurable, contractible lever for member engagement, benefit optimization, and medical cost management,” said Jake Rothstein, founder and CEO of Upside.
The $20 million raise was led by Aquiline and Flare Capital Partners, with support from existing investors including 645 Ventures, Freestyle Capital, Triple Impact Capital and Techstars. In total, Upside has raised $30 million.
Flare Capital Partners chose to invest in Upside because housing instability is “one of the most well-documented root causes of preventable medical spending in the United States,” said Dr. Dan Gebremedhin, partner of the firm.
“Individuals facing housing insecurity often experience higher rates of emergency department use, preventable inpatient admissions, and gaps in care that compound over time,” he told MedCity News. “This impacts both Medicaid and Medicare programs and remains highly relevant for health plans, health systems, and employers. Despite perceived regulatory headwinds and temporary funding requirements, demand persists outside of waivers and through Medicaid budget pressure, with health plans anchoring adoption in need and ROI rather than policy tailwinds.”
Gebremedhin added that health-related social needs are a “notoriously difficult” area to build in. However, in just 18 months of commercialization, Upside is operating in 10 states and working with 20 health plans.
The financing will support national expansion, according to the announcement. In addition, it will help scale its government healthcare and self-insured employer lines of business, as well as support investment in its AI infrastructure, Rothstein said.
Currently, housing instability leads to $9.3 billion in inpatient costs nationally, and workers who lose housing are 11 to 22 percentage points more likely to lose their jobs, the announcement stated. This is what Upside ultimately hopes to change.
“We believe the next era of healthcare infrastructure will be defined by the ability to turn social and behavioral drivers of health into measurable, manageable medical outcomes. We are building the organization to deliver that future,” Rothstein said.
Other healthcare startups that help members find housing include Ounce and Pair Team.
Photo credit: Lolon, Getty Images
