Catalyst Health Ventures joined a group of returning investors to invest $6 million in health IT startup Maxwell Health. The business is carving a niche in the private health insurance exchange sector serving employers. It sets up private health insurance exchanges for employers and advises them on their insurance options.
Maxwell said it will use the funding to expand its customer base, according to a company statement.Apart from Catalyst, returning investors include Venture Partners, Serious Change, Lerer Ventures, BoxGroup, and angel investors.
In August, the company raised $2 million to expand its wellness program into new areas such as nutrition, sleep and stress. It also planned to add an on-call nurse. The business also runs a portal for employers to manage benefits for employees and to help them track employee engagement and company spending in real-time.
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The investment in healthcare IT marks a bit of shift for Catalyst Health Ventures, which has focused on early stage life science companies such as medical devices, diagnostics, instruments and biotech. Earlier this year an SEC document indicated it was raising a $33 million fund named Catalyst Health Ventures III.
