Fintech startup Level abruptly shuts down after burning through $27 million of investors’ cash
Level, a benefits startup focused on providing flexible employee benefits, abruptly shut down on Thursday. The company informed its clients that efforts to sell the business had failed, forcing the closure and leaving customers in a difficult spot, according to a report from The Information.
“Benefits startup Level has told its clients that it is shutting down after an effort to sell the company fell through, marking another abrupt closure of a fintech that has left users in the lurch,” The Information reported.
Founded in 2018 by Paul Aaron, the New York-based Level sought to reimagine insurance by offering flexible networks and real-time claims processing. Its goal was to help employers and employees maximize their benefit spending, positioning itself as a modern alternative in the benefits space.
The startup gained traction in 2021, raising $27 million in a Series A round led by Khosla Ventures and Lightspeed Venture Partners, according to funding data from Crunchbase. This funding fueled its mission to provide employers with customizable plans, including features like 100% coverage for specific treatments and claims processed in just four hours.
