Tech-enabled insurance startup Bright Health plans expansion with $635M Series D

The latest round brings Bright Health's fundraising total to more than $1 billion.
By Dave Muoio
12:09 pm
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Bright Health headquarters in Minneapolis, Minnesota

Bright Health’s funding rounds keep getting bigger and bigger, with the health insurance startup announcing today the close a $635 million Series D.

Led by New Enterprise Associates (NEA) with additional support from Bessemer Venture Partners, Cross Creek Advisors, Declaration Partners, Flare Capital Partners, Greenspring Associates, Meritech Capital, Redpoint Ventures and Town Hall Ventures, this latest raise brings the company’s total to $1.075 billion.

WHAT THEY DO

Bright Health’s Care Partner Health Plan model sees the company partner with a single health system within a market, an approach that it says allows for a more meaningful integration of its payer services into the patient’s journey. Through individual, family and Medicare Advantage plans, members can access services such as a health rewards program or personalized care teams through a consumer-minded tech platform consisting of web tools and a mobile app.

The startup is now active in 12 states and 22 markets, thanks to a recent push that according to Forbes was largely fueled by newly established or soon-to-come plans for several Medicare Advantage markets.

WHAT IT’S FOR

Bright Health said that the new funds would fuel its continued expansion of products, regions and users. The startup will do so through new hires and continued work on its tech platform.

“Real transformation will require disruption at every stage of the healthcare system and Bright Health designed its model with this in mind,” Mike Mikan, president and vice chairman of Bright Health, said in a statement. “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. This funding will bring us one step closer to creating a value-based healthcare system that streamlines the healthcare experience for the consumer.”

MARKET SNAPSHOT

Today’s news is the latest in Bright Health’s consistent run of investor support. It closed a $200 million Series C just over a year ago, with $160 million and $80 million raises coming in 2017 and 2016, respectively. Meanwhile Devoted, another tech-enabled, integrated payer startup headed by Athenahealth vets, put together a $300 million Series B last year as well.

The upward trajectory of these so-called insurtech startups comes at a time of growing frustration with the status quo and new interest in consumer choice and convenience.

ON THE RECORD

“This marks NEA’s fourth consecutive financing supporting Bright Health, demonstrating our unbridled enthusiastic conviction for this company,” Mohamad Makhzoumi, general partner and head of healthcare services and healthcare IT investing at NEA, said in a statement. “Bright Health is changing the face of healthcare in America by putting patients first; it is our great privilege to continue supporting the Company and NEA is committed to their plans for future growth.”