Empathy Secures $47M to Enhance AI Solutions for Navigating Practical and Emotional Challenges in the Bereavement Process

Death is, as the saying goes, one of life’s most certain realities. However, coping with this truth is anything but easy. While loved ones grapple with grief, they must also manage a slew of practical tasks — from organizing funerals to settling the deceased's finances. Enter Empathy, a startup that has created a platform to simplify this complex process. With approximately 40 million users now on board, Empathy has successfully raised an additional $47 million in funding to expand its offerings.

The latest financing round, a Series B, is led by new investor Index Ventures, with key participation from major insurance players such as MassMutual Ventures, MetLife, New York Life, Securian, and Sumitomo, who are contributing as strategic investors. Originally launched with a direct sales approach, Empathy has pivoted to a B2B2C model, primarily providing services through policies offered by employers and insurers, which now represent 99% of its business.

This fresh capital will be directed towards enhancing Empathy’s tools and progressing its overarching mission to “redefine bereavement care,” as articulated by CEO Ron Gura, who co-founded the platform with Yonatan Bergman.

Empathy’s platform features a blend of AI technology and human guidance, assisting users through various aspects of the bereavement process. This includes counseling services, AI-driven obituary writing support, and automation tools for shutting down numerous online accounts the deceased may have used, all while handling complex financial matters. Gura noted that the platform will likely introduce even more AI functionalities to help users navigate the “what's next” in organizing affairs.

With this funding round, Empathy’s total capital raised reaches $90 million. Though the company is not disclosing its valuation, sources indicate it is nearing $400 million. Founded in Israel, Empathy continues to expand its research and development efforts there, while primarily focusing on the U.S. market; to date, 5 million employees and 35 million policyholders benefit from its services.

Empathy launched in the U.S. in 2021, coinciding with the peak of the COVID-19 pandemic when mortality was at the forefront of many minds and venture funding was surging. This timing facilitated two rapid funding rounds: an initial $13 million, followed by an additional $30 million within just five months.

While death rates in the U.S. are improving post-pandemic, figures from the U.S. Census show that over 3 million people still pass away annually. Additionally, the average time required to settle a deceased person’s affairs remains staggering, exceeding 420 hours. Unfortunately, many people are unaware of this process until they must face it themselves — a reality I know all too well.

Gura, a seasoned entrepreneur with a background that includes founding a social commerce startup sold to eBay (The Gifts Project) and holding key roles at WeWork, was inspired to create Empathy after experiencing personal tragedy that placed him in the challenging position of managing practical matters during emotional times.

“I didn’t know much about estate planning but had extensive experience with grief,” he shared.

The rise of advanced AI tools has significantly influenced Empathy’s evolution in recent years. While various technologies have tried to incorporate AI into the realm of empathy, Gura emphasizes that the startup remains committed to maintaining a human-centered approach while leveraging tech to streamline organizational tasks in cost-effective and scalable ways.

“For Empathy to offer this service as standard for all life insurance policyholders, it would be impossible without intelligent technology,” remarked Danny Rimer, a partner at Index, in an interview. “Certain elements will always require human handling, but tech should complement those efforts — such as managing bank or subscription account closures. AI can replicate a lot of that necessary work and assist in drafting eulogies.”

This funding round also saw contributions from previous investors General Catalyst, Entrée Capital, Latitude (the sister fund of existing investor LocalGlobe), and Brewer Lane.