Bright Health, a Minneapolis, Minnesota-based health insurance startup that provides Care Partner Health Plans at competitive prices, announced that it has raised $200 million in an oversubscribed Series C funding round. This round of funding includes two new investors: Declaration Partners and Meritech Capital. Existing investors Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates, Redpoint Ventures, and Town Hall Ventures also participated in this round.
Since launching in early 2016, Bright Health raised more than $440 million across three rounds of equity financing. Bright Health plans to use the funding to support the ongoing expansion into new markets.
Currently, Bright Health is offering a range of individual, family, and Medicare Advantage plans across Alabama, Arizona, Colorado, New York City, Ohio and Tennessee through its website, call center, broker partners, government websites, and public health insurance exchanges.
“Bright Health has continued to execute at a fast pace towards our goal of disrupting the old health care model that places insurers at odds with providers,” said Bright Health CEO Bob Sheehy — who is the former CEO UnitedHealthcare. “With our recently announced expansion, we will triple our geographic footprint in 2019. And Bright Health’s current high re-enrollment rate shows that consumers are ready for this improved healthcare experience – especially when it is priced competitively. We are honored to welcome these long-term investors to the Bright Health community as we look forward to what’s ahead for the company. We are just getting started.”
“As a growth investment fund, Meritech is looking for opportunities to invest in fast growing sector leaders whose potential to use technology will enhance the customer experience of large populations,” added Meritech Capital Partners managing director Craig Sherman. “Not only has Bright Health proved this is possible with its above average re-enrollment rates, but the data infrastructure that they are building has the potential to produce better health outcomes for millions of hardworking Americans and disrupt health insurance – and healthcare – as we have come to know and accept it.”
Andrew Goldfarb of Declaration pointed out that Bright Health’s “differentiated model solves long-standing issues in healthcare.” And New Enterprise Associates’ General Partner and head of healthcare services and healthcare IT investing Mohamad Makhzoumi explained that he was awestruck by the achievements Bright Health achieved since the company raised its Series A funding in 2016.
Sheehy founded Bright Health with Kyle Rolfing (co-founder and former CEO of Definity Health and RedBrick Health) and Tom Valdivia, MD, MS (former chief health consumer officer of Definity Health).