Honor Raises $370M in Debt and Equity, Solidifies Unicorn Status
Honor, a San Francisco-based home care company, solidified its unicorn status on Tuesday following the arrival of a massive financing round. The Series E includes $70 million in equity financing and $300 million in debt financing, valuing the company at $1.25 billion. The round was led by Baillie Gifford.
Honor provides older adults with digital access to in-home care services. Its healthtech platform connects caregivers with elders via its national network of local home care agencies. Caregivers on the platform have the opportunity to build their own business while Honor handles back office tasks like recruiting, scheduling and payroll.
“Given that the whole purpose of our company is to better care for older adults, it means we’re helping an ever greater proportion of society,” Seth Sternberg, co-founder and CEO of Honor, said in an email to Built In. “We literally work to create life-changing experiences for our clients and our Care Pros.”
Honor’s team also provides prospective caregivers with digital marketing and sales training to help them grow their business from the ground up.
“With the rapidly growing population of older adults, the home care market provides a unique opportunity to transform an industry that has not yet benefited from technology,” Anika Penn, investment researcher of Baillie Gifford, said in a statement.
Honor is working toward expanding the range of services it offers on its platform by forming partnerships with health system providers, payers, and other organizations along the care continuum.
“[We’re] the only company that has the reach and the deep tech investment needed to transform the home care industry,” Sternberg continued. “[This is] an industry that has largely been ignored by tech companies.”
The company will use the additional capital to triple down on its research and development efforts, which means massively growing its product and engineering departments. Eleven engineering roles are currently up for grabs in addition to dozens more across Honor’s operations, data and product management teams.
“In the coming years technology we build will have the potential to open a channel to allow aging adults more streamlined access to the products and services they need at home,” Sternberg continued. “[We look forward to] creating the most advanced ecosystem to serve the aging population around the world.”
Honor has raised $325 million in venture capital financing to date, according to the company.
Additional investors Andreessen Horowitz, T. Rowe Price Associates and Thrive Ventures participated in the round, among others.