After raising $200 million at the end of 2018, Minneapolis-based insurance startup Bright Health added more funds to its war chest. The company closed an oversubscribed $635 million series D round on Tuesday, which it will use to fuel its aggressive growth plans as the company expands across the U.S.
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“The Series D funding marks not only a major investment in our company’s future but is an affirmation from our existing investors that we have tapped into an unmet consumer demand for a better healthcare experience,” Bright Health CEO Bob Sheehy said in a news release. “Over the past four years, we have seen exceptional interest in our approach to transforming healthcare, which is reflected in our investors’ continued capital support, membership growth and geographic expansion year-over-year.”
Sheehy, former CEO of UnitedHealthcare, co-founded the startup in 2016. Bright Health’s strategy was to offer narrow-network plans with better care coordination and lower out-of-pocket costs.
Bright Health initially launched in Colorado, offering individual market plans. Since then, the company has branched out to offer Medicare Advantage plans, and now operates across 12 states. In July, the company said it had grown to 60,000 members and planned to double its footprint in 2020.
“Real transformation will require disruption at every stage of the healthcare system and Bright Health designed its model with this in mind,” Bright Health Chairman and Vice President Mike Mikan said in a news release. “By eliminating the friction that has traditionally existed between payers and providers, we are creating true alignment to drive down costs and improve health outcomes.”
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Repeat investor New Enterprise Associates (NEA) led the company’s most recent funding round. NEA also served as a lead investor at the company’s beginning, when it emerged with an $80 million series A round in 2016.
This is NEA’s fourth consecutive investment in Bright Health, demonstrating the venture firm’s “unbridled enthusiastic conviction for this company,” Mohamad Makhzoumi, general partner and head of healthcare services and healthcare IT investing at NEA, said in a news release.
Bright Health also had follow-on investments from Bessemer Venture Partners, Cross Creek Advisors, Declaration Partners, Flare Capital Partners, Greenspring Associates, Meritech Capital, Redpoint Ventures and Town Hall Ventures.
The company has raised more than $1 billion in capital to date. Bright Health previously raised a $200 million series C in late 2018, a $160 million series B in 2017, and an $80 million series A round in 2016.
Photo Credit: freedigitalphotos user Salvatore Vuono
