Clara Home Care Closes $3.1M Seed Round to Transform Senior Home Care
AI-powered platform delivers flexible, affordable in-home care that puts families in control and empowers them with tools to hire trusted, high-quality caregivers
SAN FRANCISCO, June 03, 2025--(BUSINESS WIRE)--Clara Home Care, a technology platform that makes the direct hiring of professional, in-home senior caregivers more accessible, convenient and affordable for families, today announced it closed a $3.1 million seed round led by Torch Capital, Virtue and Y Combinator, with participation from several prominent angel investors. Founded in 2024 with deep roots in Northern California, Clara recently announced plans to expand its services nationwide in the near future.
"The home care crisis is only getting worse—families are stuck juggling the needs of both kids and aging parents," said Jon Levinson, CEO and co-founder of Clara. "They need real help, but traditional agencies just aren't cutting it. They're too rigid, too pricey, and too impersonal. Clara offers a more flexible, affordable approach that puts families in control and gives them the tools to ensure their loved ones get the best care possible."
Home care is regular, non-medical assistance provided in a person's home, helping with daily activities like bathing, cooking and companionship to support independent living. Clara streamlines the entire caregiving process—from discovery and background checks to scheduling, payroll and tax filings—all in one easy-to-use solution that provides full transparency and ensures compliance. By offering the flexibility of private hiring without the administrative burden, Clara eliminates the high costs and rigid structures of traditional agencies. Families save 20% to 40%—often more than $10,000 annually—while gaining control over who provides care and when.
Clara's platform uses AI-powered tools to match families with caregivers based on skills, availability and personality fit, promoting longer-lasting, more compatible relationships. For caregivers, Clara offers significantly higher pay—$25–$30/hour in major metro markets—along with flexible hours and digital tools that simplify daily tasks. By meeting the needs of both families and caregivers, Clara delivers a more affordable and lasting way for older adults to age at home.
Clara's entry into the home care market comes at a critical moment for senior care in America. Over 11,000 Americans will turn 65 every day through 2027, driving unprecedented demand for long-term care. Nearly 70% will need such care, often for three years, and more than 95% prefer to age at home. The U.S. home care market is projected to grow to 5.5 million job openings by 2033 but only 750,000 new workers. Home care aides earn just $14–$16 an hour on average, often below the poverty line, while agencies typically charge families double. With annual in-home care costs topping $100,000 and nearly 80% of caregivers leaving their jobs each year, the system is strained. Clara seeks to fill the gap by building a bridge between families seeking high-quality care at a reasonable price and professional caregivers who deserve fair pay, flexibility and respect—redefining what home care looks like in America.
In its first year, Clara's innovative approach to home care has created strong demand from families and caregivers alike, delivering over 15,000 hours of care in the San Francisco Bay Area and onboarding more than 1,500 vetted caregivers to its network. The company has grown rapidly, increasing its revenue more than 30-fold since its first month of operation.
"We're thrilled to partner with Clara and support its mission to help families everywhere access the quality in-home care they deserve," said Katie Reiner Peykar, Partner at Torch Capital. "The Clara team brings unparalleled experience and a deep understanding of the challenges faced by families navigating senior care. Their innovative approach to combining technology with compassionate, personalized care has the potential to redefine how we think about aging at home."
About Clara Home Care
Clara Home Care is a technology platform that helps families directly and affordably employ professional, in-home senior caregivers. Born from a co-founder's personal struggle to find high-quality, reliable care, Clara streamlines the entire caregiving process—from discovery and background checks to scheduling, payroll and tax filings—all in one easy-to-use solution. By offering the flexibility of private hiring without the administrative burden, Clara eliminates the high costs and inflexibility of traditional approaches to in-home care while maintaining compliance and transparency. Families are matched with caregivers based on skills, availability and personality fit through AI-powered tools that promote stronger, longer-lasting relationships. At the same time, Clara empowers caregivers with higher pay, flexible hours and modern tools that simplify their work and improve job satisfaction. Founded in 2024, Clara recently announced plans to expand its services nationwide in the near future. Learn more at https://clarahomecare.com. Follow Clara on social media: LinkedIn, Facebook, Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250603693468/en/
Contacts
Media Contact:Michael TeboGabriel Marketing Group (for Clara)Phone: 571-835-8775Email: michaelt@gabrielmarketing.com
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