In its first-ever investment, newly formed Milwaukee venture capital firm Gateway Capital Partners deployed $400,000 to Milwaukee-based Tip a ScRxipt, a crowdfunding platform for out-of-pocket medication costs.
Gateway Capital was the lead funder in Tip a ScRxipt's $500,000 seed financing round. The startup also received a $100,000 investment from gener8tor through the Northwestern Mutual Black Founder Accelerator, which Tip a ScRxipt founder Chad Johnson participated in earlier this year.
Tip a ScRxipt, which was founded in 2020, will use the money to launch a pilot program in early 2022 with health care providers from multiple Midwest states, Johnson said. It will also grow to three team members — including Johnson, Tip a ScRxipt business adviser Michael Melnychuk and an implementation manager.
Gateway Capital's $13.5 million fund closed this summer. Led by managing partner Dana Guthrie as part of the state-sponsored Badger Fund of Funds, it's focused on investing in pre-revenue startups in Milwaukee that positively impact low- or moderate-income communities. Tip a ScRxipt is the first of 12 to 15 companies that Gateway Capital plans to fund within the next four years.
Johnson was vying for Tip a ScRxipt to be one of Gateway Capital's portfolio companies because he believes in its mission, he said.
"You can build a tech startup from anywhere but to be able to do it here in Milwaukee is of significant value to me," Johnson said.
Through its app, Tip a ScRxipt will allow users to securely send money to loved ones who need help covering out-of-pocket medication costs. With a Tip a ScRxipt debit card, recipients will only be able to use the money to cover prescription medication, medical supplies or medical equipment from pharmacies.
Tip a ScRxipt is launching through partnerships with health care providers that will use Tip a ScRxipt to deploy their payment assistance programs. The platform can help providers decrease readmissions and increase medication adherence, Johnson said.
"With the ever-increasing cost of medical expenses, Tip a ScRxipt has a large market opportunity," Guthrie said in a statement. "Chad is a problem-solver and is designing a product to mutually benefit both patients and the healthcare industry."
