Bright Health Secures $635 Million Series D Funding to Expand Health Insurance Market Presence

VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that on December 17, 2019, U.S. health insurance startup Bright Health announced the completion of a $635 million Series D financing round. The round was led by NEA (New Enterprise Associates), with participation from eight other investors and companies, including Bessemer Venture Partners, Cross Creek Advisors, and Declaration Partners.

Reportedly, Bright Health previously completed an $80 million Series A financing round in April 2016, a $160 million Series B financing round in May 2017, and a $200 million Series C financing round in November 2018. Including this latest round, Bright Health has raised over $1 billion in equity financing.

This round of financing will be used to support Bright Health in acquiring new users and expanding its health insurance market.

Bright Health, founded in November 2015 and headquartered in Minnesota, USA, is a health insurance startup dedicated to reducing healthcare costs. It aims to provide high-quality health insurance at competitive prices, thereby enhancing satisfaction among both patients and insurers. The company was established by a group of seasoned professionals with extensive experience in the healthcare sector, who collaborate with leading providers within the healthcare system to foster better connections between healthcare consumers and service providers.

Bright Health’s innovative Care Partner health plan model, launched in 2016, is specifically designed to deliver superior, integrated healthcare services through health systems. This model eliminates the traditional friction between payers and providers, optimizing the experience for consumers and patients. Through its exclusive Care Partner health plans available in local communities, Bright Health is helping consumers and healthcare providers access simpler, more affordable, and personalized healthcare services.

Regarding this investment in Bright Health, Mohamad Makhzoumi, Partner at NEA’s Healthcare Services and Healthcare IT practice, stated, “This marks the fourth consecutive time NEA has provided funding to Bright Health, underscoring our steadfast confidence in the company. By putting patients first, Bright Health is transforming the landscape of healthcare in the United States. We are honored to support them in this mission.”

Bob Sheehy, CEO of Bright Health, stated, “The Series D financing is not only a significant investment in our company but also an affirmation from our existing investors. It demonstrates that we have addressed unmet consumer needs and delivered a better healthcare experience to consumers. Over the past four years, we have observed strong interest in the transformation of the healthcare industry, as reflected in the continued capital support from our investors, growth in our membership base, and year-over-year geographic expansion.”

NEA (New Enterprise Associates), founded in 1978, is one of the leading firms in the global venture capital industry. Its mission is to help entrepreneurs build and grow companies that transform the way people live and work. NEA’s investments are concentrated in the information technology and healthcare sectors. The firm currently manages over $6 billion in capital and has invested in more than 500 companies, of which 145 have gone public and 185 have been merged or acquired.

(Compiled by Wang Fang)