College Savings App UNest Buys Littlefund, Doubling Its User Base
UNest, a mobile app that helps parents build college nest eggs for their kids, announced Wednesday it has acquired Littlefund, a similar app that will double UNest's user base to over 60,000 people. The integration will also make it so extended family members and friends can contribute directly to a UNest account on behalf of a child.
"Both are applying a modern, technology-driven approach to making financial solutions more affordable, accessible and user-friendly for a new generation of parents," said Ksenia Yudina, chief executive officer and founder of UNest, in a written statement. "Our teams share the same values and there is a lot of synergy in terms of vision and demographics."
Yudina, who was previously a senior executive at Capital Group, said she got the idea for UNest after seeing that her millennial friends having babies did not know how to invest in college savings plans and were put off by the stacks of paperwork that traditionally have been required.
UNest makes the investing simpler. It charges users a $3 monthly advisory fee for the service that funnels cash into 529 plans, an investment tool that provides tax breaks for college savings. It also offers trust accounts for minors.
The deal comes after UNest closed an oversubscribed $9 million Series A financing in June at a $25 million, post money valuation, according to Pitchbook data. The round was led by Anthos Capital, which also made an introduction to NBA All-Star Baron Davis, who ended up becoming an investor in the company and a brand representative.
UNest, which is headquartered in North Hollywood, launched in February and says it has seen "rapid growth" in users during the pandemic as the savings rate increased and families focused on long-term savings goals.
Following the completion of the acquisition, Littlefund founders Mimi Chan and Isaac Dressman will join UNest as head of experience and head of research and development, respectively. They are currently based in San Francisco but are planning to relocate to L.A. when employees can go back into the office.
Terms of the deal were not disclosed.
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On this week's episode of LA Venture, hear from Marcos Gonzalez, the managing partner at Vamos Ventures, a seed-stage venture fund which invests in Latino and diverse founders. Over half of L.A. County is Latino. A relatively new fund, investments are in the range of $100,000 to $500,000. Seems like a great time to be investing in this community! And, Vamos is hiring...
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El Segundo-based telemedicine technology provider Cloudbreak Health and Florida-based UpHealth Holdings, a digital healthcare provider, announced they will combine and go public via a SPAC in a deal that values the combined companies at $1.35 billion.
Named UpHealth, Inc., the new company aims to streamline online health care by becoming a single provider of four different services: telehealth, teletherapy, a health care appointment and management system and an online pharmacy.
UpHealth runs healthcare platform Thrasys Inc. and MedQuest Pharmacy, along with two other behavioral health companies. The merger with Cloudbreak, which under the pandemic expanded their interpretation services to remote medicine, will give the new company a foothold in almost 2,000 hospitals.
"What we wanted to do was form a business that could really be a digital infrastructure for health care across the continuum of care, right from home to hospital," said Jamey Edwards, the co-founder and CEO of Cloudbreak. Under the agreement, he will become the company's chief operating officer.
GigCapital2 expects the merger transaction to close at the start of Q1 2021. UpHealth will be publicly traded under the ticker "UPH" on the New York Stock Exchange. UpHealth's integrated care management platform serves over 5 million people, and is expected to reach 40 million over the next three years, according to the company.
Jamey Edwards, co-founder and executive director of Cloudbreak
COVID-19 caused a meteoric growth in the use of telehealth services. In February, 0.1% of Medicare primary visits were provided through telehealth. In April, that number was nearly 44%, according to the U.S. Department of Health and Human Services.
"Key stakeholders have seen and responded well to the benefits that telemedicine can bring, but they need a more comprehensive, integrated solution," said Al Gatmaitan, who has been named the co-chief executive officer of UpHealth. "This is what UpHealth focuses on, the adoption of digital health solutions well beyond the pandemic crisis."
The deal with the blank check company GigCapital2 gives the two digital health companies access to a wider network. UpHealth and its family of companies operate in 10 countries and their pharmacy has 13,000 e-prescribers in the U.S.
UpHealth will use the Cloudbreak platform as part of their global telehealth services to provide patients with round-the-clock care under a variety of specialties, including telepsychiatry and tele-urology. UpHealth also has contracts internationally, to provide country-wide care in India, Southeast Asia and Africa.
Edwards joined Cloudbreak in 2008 when it went from public to private. It has raised $35 million in venture funds, most recently in the first quarter of this year scoring $10 million from Columbia Partners Private Capital.
Editor's note: An earlier version of this story identified Jamey Edwards as executive director of Cloudbreak, he is its CEO.
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Ryan Edwards, the co-founder of Happier Camper, said he's asked all the time if his company leans on influencer marketing to promote their vintage-style trailers beloved by millennials.
With a waitlist six months out and demand growing from hotel-weary travelers, he said it isn't a priority yet.
"We almost don't need to," said Edwards.
That's because the $25,000 to $50,000 custom trailers have been a hit with a loyal fan base, and rising demand during the pandemic has only helped. Orders for compact trailers at the lower price end, including Happier Camper's 75-square-foot camper, are growing as newbie road trippers look for COVID-safe travels.