Why QED invested in XP Health

At QED, we aim to partner with fintech leaders redefining traditional markets by bringing new business models and technology to bear. The health benefits market impacts every American and is a strong match for this thesis. We believe vision benefits are particularly ripe for innovation.

Today, we are excited to share our investment in XP Health, a company that is reinventing vision benefits to enhance the accessibility, affordability and customer satisfaction of vision care through a digital-first vision platform.

The need for vision care and benefits in the United States is substantial. More than 200 million U.S. adults (79 percent) use a form of vision correction, including eyeglasses, prescription sunglasses, reading glasses and contact lenses. Two out of every three U.S. adults have some type of vision care coverage (source), even those with 20/20 vision. Vision benefits are considered table stakes for employers, who are generally not likely to sacrifice this coverage even during economic uncertainty.

Currently, the vision insurance market is dominated by a few key players, with VSP and EyeMed (owned by Luxottica) serving a combined member base of over 120 million. However, many vendors in the vision insurance market struggle with customer satisfaction due to subpar claims submission experiences, confusing coverage options and often higher out-of-pocket costs for consumers even with insurance.

XP Health is revolutionizing the experience of eyecare across eye exams and eyewear shipping, through a digitally native product that significantly enhances customer satisfaction through personalized care and reduces out-of-pocket costs. The platform is designed to be inclusive, offering services to all members, including those who do not require prescription eyewear. This inclusivity extends to online prescription renewals and the option for in-person eye exams. Even members with 20/20 vision can access various eyewear options like sunglasses, blue light glasses and reading glasses - many of which are not covered by traditional vision benefits providers.

The platform leverages artificial intelligence to personalize the shopping experience, offering tools like virtual try-ons to help users seamlessly find the perfect fit and style - making the entire experience refreshingly digital and saving consumers both time and money on office visits, and the headache of submitting claims. Additionally, XP Health aims to lower the financial barrier to accessing eyewear by providing both standard and designer frames at reduced costs, inclusive of recommended lens options often without additional fees.

When we met the XP Health team, it was clear they found a market pain point and created a product the market is eager to embrace. They have successfully sold into large enterprise customers like Docusign and Navistar and built robust and wide-ranging partnerships with professional employer organizations (PEOs), ancillary carriers, health plans, brokers, consultants and third-party administrators (TPA). By offering a comprehensive vision benefits solution that integrates seamlessly into existing health plans, XP Health stands out as a compelling alternative to legacy vision benefits providers.

The team at XP Health brings together a wealth of experience in healthcare, technology and consumer goods, having led organizations within VSP, UnitedHealth and One Medical. By improving access to quality eyewear and eye care services, XP Health is addressing a critical aspect of public health. Their commitment to affordability and inclusivity ensures that more people can maintain good vision health, ultimately leading to better quality of life and productivity. We are thrilled to partner with the XP Health team and help build an enduring company.

If you are interested in learning more, please don’t hesitate to reach out:

Victoria Zuo, Principal: Victoria@qedinvestors.com; Connect on LinkedIn