Startup Abby Care raises $82 million to turn family members into paid caregivers

Havi Nguyen's early experiences navigating the American health care system shaped her professional journey. At a young age, she took on responsibilities such as translating at doctor's appointments and managing Medicaid paperwork for her family, who had recently relocated from Vietnam. The challenges of adjusting to a new country were compounded by the complexities of healthcare— a reality that became increasingly familiar to her as the eldest daughter.

By age 21, Nguyen joined an early-stage health technology startup dedicated to providing therapy for children with autism. During the height of the COVID pandemic, she recognized a significant gap in the availability of therapists and technicians, many of whom changed jobs frequently.

"I frequently found myself pondering: Who is the one person in the child's life who will reliably provide care?" Nguyen remarked. "Parents consistently expressed their willingness to step in and asked us how they could acquire these skills. This led me to consider: Could we create a care model that empowers the individual already present in the patient’s life to deliver care?"

This concept culminated in the establishment of Abby Care, an AI-driven home care startup specializing in training family members to become certified, paid caregivers. Founded in 2022, the company operates as a Medicaid provider, focusing on empowering families to deliver care.

Recently, Abby Care completed an $82 million Series C funding round led by Transformation Capital. New investments came from CVS Health Ventures, Frist Cressey Ventures, and Pivotal Ventures, while existing investors such as Khosla Ventures, Thrive Capital, and Sequoia increased their stakes. Abby Care collaborates with health plans to facilitate in-home care for families in need, with the overarching goal of integrating patients, regulators, health plans, and family caregivers to create a more effective healthcare system for vulnerable populations.

"The companies that will thrive are those that can design care models that unite all stakeholders within the U.S. healthcare system," Nguyen stated.

The challenges facing the U.S. healthcare workforce are well-documented, ranging from physician and nurse burnout to existing and projected labor shortages. The gap in caregiving for patients receiving home-based care is particularly alarming, according to Justin Brock, a general partner at CVS Health Ventures. While competitors exist— including established home health agencies and caregiver training platforms— the demand for solutions remains substantial.

"Traditional private duty nurse programs only meet 65% of authorized shifts, which is astonishing," Brock explained. "This leaves countless medically complex patients without adequate coverage... Simultaneously, there are millions of family caregivers already providing care in their homes."

One such individual is Maria Villegas Corrales from Colorado. Following her daughter Mia's serious medical challenges, including open heart surgery and pacemaker placement within her early years, Corrales discovered Abby Care. She emphasizes the lack of guidance many families encounter during these transitions.

"Often, they provide a small bag of supplies and send you home to figure it out," Corrales noted. "It can be daunting to return home without a clear understanding of what to expect. Much of the learning happens in real-time."

Corrales expressed that her role as a paid caregiver has significantly enhanced her ability to support Mia, adding that many families are unaware of available resources. "Families can indeed receive compensation for caring for their child, which is crucial information that many don’t realize."

Nguyen recognizes the enduring nature of this relationship.

"I always tell my team that Abby Care's mission extends beyond merely empowering and compensating family caregivers," she concluded. "Our ultimate purpose is to enable them to thrive and succeed."