VC Funding Pitch: Medicare Brokerage Firm
1. Define Your Business in One Sentence
We help new and existing consumers shop for and enroll in Medicare and other healthcare products, offering personalized guidance and a seamless experience.
2. Identify Your Market Size
Domestic Market:
The U.S. Medicare market is estimated to include 62 million people in 2023, with projections to grow to 78 million by 2033.
Global Market:
The global Medicare Advantage market is expected to grow from $456.6 billion in 2023 to $758.5 billion by 2032, driven by increasing healthcare demand among aging populations and growing insurance adoption.
3. Showcase Market Growth
The Medicare and healthcare market is experiencing strong growth.
- By 2025, the global healthcare and insurance market is projected to reach $100 billion, fueled by the demand for accessible, affordable healthcare coverage, especially among senior populations.
4. How Are You Going to Monetize It?
We generate revenue through four primary channels:
- Per-policy commissions: We earn a commission for each new policy written.
- Residual commissions: We receive ongoing commissions for as long as a policy remains active.
- Override payments: We receive "override" payments from Field Marketing Organizations (FMOs), intermediaries between agents and carriers, for every policy submitted.
- Marketing dollars: Carriers reimburse us for marketing expenses related to attracting new consumers and promoting their products.
5. Showcase Traction (What You've Done So Far)
- Business Setup: We've established the LLC and secured all necessary licenses to operate as a Medicare brokerage firm.
- Operational Systems: We’ve implemented operational systems, including CRM, lead management, and customer support tools to streamline business operations.
- Agent Network: The ideal agent profile has been defined, with training materials and support scripts in place to help agents close sales more effectively.
- Carrier Partnerships: We've negotiated favorable "override" levels with key carriers, establishing a strong foundation for scalability.
6. Team Highlights – Team Experience
Founder Background:
- Over 20 years of experience in the healthcare industry, specializing in business scaling, operations, and sales.
- Built a startup that generated $10M in its first 9 months and $35M in its second year, culminating in an acquisition.
- Demonstrated success in taking early-stage startups from 700 policies sold in Year 1 to 3X growth in Year 2.
- Expertise spans recruiting, agent certification, training, daily operations, scaling strategy, and securing strategic partnerships.
- Currently consulting for two media seller clients, helping them diversify by launching brokerage firms to handle overflow media volume.
Team Members:
- The team includes experienced professionals in healthcare brokerage, lead generation, carrier relationships, and FMO support.
7. Highlight the Passion and Brand Story
We’re at a unique moment in the industry, where we can capitalize on Book of Business persistency at an all-time high.
After years of building and supporting brokerage firms for others, I’m ready to apply my expertise and strategies as a salesperson and leader to build my own firm. This venture is not just about growth—it's about creating a sustainable model that emphasizes talent over expenses and is profitable from day one. I'm passionate about scaling in a way that ensures we spend money where it counts—on the right people—while maintaining profitability as we expand.
8. Financial Projections
Year 1:
- Projected Year Revenue: $400,000
- Policies Sold: 1,000 policies
Year 2:
- Projected Revenue: $1,000,000
- Growth: 100% increase in new business, plus residual commission earnings.
Year 3:
- Projected Profitability: Expected to break even and achieve profitability.
- Expansion: Expanding into additional product lines (e.g., dental, vision, life insurance) to diversify revenue streams.
9. Funding Ask
Amount:
- We are seeking $100,000 in funding to accelerate growth.
Use of Funds:
- Product Development: Enhance platform and technology infrastructure.
- Marketing & Consumer Acquisition: Boost marketing efforts to attract and retain customers.
- Team Expansion: Hire key personnel to drive sales, operations, and customer support.
- Scalability: Increase operational capacity to scale nationwide.
Equity Offer:
- In exchange for the investment, we are offering 10% equity in the company.
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