Medicare Company Connected To Ramaswamy, Vance And Thiel Now Worth $1.5 Billion: How 'Chapter' Is Changing The Game

Thanks to their shared history in the venture capital space, there is some overlap in investments and past company dealings between Peter Thiel and Vice President J.D. Vance.

A Medicare startup that recently raised $75 million at a $1.5 billion valuation counts Thiel and Vance as early investors and former board members, and also has a connection to former Republican presidential candidate and Trump ally Vivek Ramaswamy.

What Happened: Medicare startup Chapter was co-founded by Ramaswamy in 2020 and is one of several companies in the health care connected to the politician now running for governor of Ohio.

The latest funding round of $75 million values Chapter at $1.5 billion, which comes years after both Thiel and Vance invested in the company.

Private equity company Stripes led the latest investment round, according to TechCrunch. Other investors in the funding round include XYZ Venture Capital, Susa Ventures, Addition, Narya Capital and Maverick Ventures.

Chapter helps consumers select Medicare health plans by analyzing prescription drug coverage, doctors and hospitals covered and prioritizes client needs over insurer profits, according to the report. This means that some of the plans Chapter recommends have no fees or minimal fees, unlike other firms that recommend plans where the middleman receives the largest commissions.

"Chapter will use the funds to deepen its enterprise partnerships, invest in novel data and technology infrastructure to power smarter, more proactive recommendations for members, and accelerate Chapter's impact on America's seniors," the press release said.

The company said it has seen 4x enrollment growth over the past year.

Read Also: J.D. Vance Venture Capital Background Under Scrutiny: ‘It Never Seemed Like He Was Even Working, It Felt Like His Full-Time Job Was The Book’

MAGA Connections: Chapter is one of several companies with ties to multiple people who are now part of President Donald Trump's administration or donors to his presidential campaigns.

Venture capital firm Naraya, founded by Vance, led the Series A funding round for Chapter in 2020. Vance previously had a seat on Chapter's board before stepping down when he ran for Senate in 2021.

Vance's open seat was filled by Thiel, who was also an investor in the company. Thiel was a backer of Narya Capital previously.

While Ramaswamy, Vance, and Thiel have all stepped down from their roles on the board, the company will forever be connected to the three Trump allies.

Vance listed Chapter as one of his investments in recent financial disclosures and could still own a stake in the company.

Medicare has become a highly debated political topic, with the Republican Party looking to make potential cuts to Medicare, while some members of Congress have suggested privatizing Medicare.

While Vance is not actively involved with Chapter, his financial stake in the company could be impacted by what the Republican party does to Medicare in the future.

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