S3 Ventures is certainly becoming more active with the announcement today that it led a $3M Series A round for Tango Health. The funds from S3 and several angel investors will help to accelerate the nationwide rollout of its innovative web-based Health Savings Account (HSA) management service. The complete solution developed by Tango Health is making it easy for employers and employees to set up, manage and fund HSA accounts, and capture tax savings even if qualifying expenses are paid from another account or credit card.

“The flexibility offered by HSA accounts is often misunderstood, leaving them underutilized. This results in individuals losing up to $2000 per year in tax savings, and their employers losing billions more,” said Brian R. Smith, Managing Director of S3 Ventures. “The solutions developed by Tango Health are making it easy for everyone to use HSA accounts and are a ‘must-have’ for companies of all sizes that provide consumer-directed health care benefits to their employees.”

The Tango Health Series A financing round was led by S3 Ventures and included participation from angel investors Mike Turner, founder and CEO of Waveset (acquired by Sun Microsystems); John Hime, former senior marketing executive at Tivoli Systems, MIPS Computers and Sun Microsystems; and Kevin Cunningham, Co-Founder and president of SailPoint.

“Tango Health helps employers by expanding the appeal of HSAs and adapting them to the real financial goals of a much wider audience of employees,” commented Duncan Van Dusen, CEO of Tango Health. “Organizations and employees using our services thus gain tax savings they can use to help offset the rising costs of health care. We are pleased to be working with this strong team of investors to support our expansion efforts.”

Duncan Van Dusen, CEO, and Todd Praisner, President, co-founded Tango Health in 2008. Previously, they held senior management positions at Works, a financial software company acquired by Bank of America in 2005. They are joined by Patti Soch, vice president of Finance, who brings a history of experience building successful technology companies.