Collective Health, a health insurance software and services provider startup, has raised $81 million in Series C round of funding led by Google Ventures and NEA and Founders Fund along with Maverick Capital, Redpoint Ventures and RRE Ventures.
Founded in 2013, Collective Health with the aim to transform the US health insurance experience has grown to over 120 employees working to refine every layer of the health benefits experience. It helps employers save money by self-insuring rather than paying premiums to a health insurance company. The startup claims to serve 30,000 members and process more than $200 million in health insurance claims in 2016. Its clientele list includes Activision Blizzard Inc and Zendesk.
With the fresh funds, Collective Health plans to offer its employer health insurance solution to companies around the country in 2016, growing beyond California for the first time. “We’re working to shift the focus of health insurance from profits to people,” said Ali Diab, CEO of Collective Health. “This significant infusion of capital comes at the perfect moment, enabling us to make our solution available to companies across the U.S. The funding will also enable us to continue to invest in building out our world-class team, forge new relationships with key partners and significantly grow our customer base. Ultimately, this funding will give Collective Health a big boost in our mission to make the healthcare experience in our country something we can all feel proud of.”
“We want our employees and their families to have the best healthcare experience possible, and Collective Health can help us deliver on this commitment,” said Milt Ezzard, Activision Blizzard’s Senior Director of Global Benefits. “We believe the key to a positive healthcare experience is applying technology and excellent member care to get the right resources to employees and their families at the right time. Activision Blizzard is known for leveraging technology and innovation to improve employee health by partnering with companies that share this vision, and we’re excited to work with Collective Health.”
Apart from offering good benefits experience to members, the startup provides benefit to managers and HR team with the stage they need to communicate and deliver the value of employer-sponsored health insurance benefits to employees and their families.