Collective Health Secures $205M Series E Funding Led by SoftBank Vision Fund to Expand Enterprise Health Insurance Platform

VCBeat (WeChat ID: vcbeat) has learned that on June 17, health technology company Collective Health announced the completion of a $205 million financing round. The round was led by SoftBank Vision Fund, with participation from new investors PSP Investments, DFJ Growth, and G Squared, as well as existing investors Founders Fund, GV, Maverick Ventures, Mubadala Ventures, NEA, and Sun Life Financials.

The proceeds from the financing will be allocated to two purposes: first, to adopt its corporate healthcare platform in collaboration with U.S. employers and deepen strategic partnerships across the industry; second, to provide more robust technological capabilities to address fundamental health insurance service issues plaguing U.S. consumers and employers.

Collective Health, founded in 2013 and headquartered in San Francisco, California, with offices in Chicago, Illinois, and Utah, simplifies employer healthcare processes through integrated technology solutions, providing customers with personalized health insurance.

Currently, most of the U.S. health insurance industry still relies on outdated and fragmented technology systems. Collective Health is attempting to rebuild a unified software platform to provide health insurance services for employers and their covered populations.

Collective Health enables employers to create a seamless experience for their employees and drive engagement with ecosystem solutions, thereby fostering a healthier workforce. Its patent-pending machine learning engine, CH Cortex, identifies individual members’ care needs, ranging from chronic disease management to radiology services.

Collective Health Insights also provides employers and their advisors with a window into the trends driving healthcare spending. For most companies, this expenditure is second only to payroll. Insights will introduce new features and datasets, expanding Collective Health’s commitment to helping employers better understand and manage emerging health issues, thereby enabling them to shift from a reactive to a proactive approach and deliver superior healthcare services to their employees.

Ali Diab, Co-founder and CEO of Collective Health, said: “We are deeply grateful to our investors. Whether by expanding our network partnerships or facilitating direct relationships between employers and provider systems, we will continue to set industry standards by prioritizing our customers and delivering exceptional healthcare experience services.”

“As U.S. healthcare spending reached $3.65 trillion in 2018, Collective Health is reshaping the healthcare experience for companies and their employees. Their innovative business model and technology platform not only help employers understand and optimize their healthcare expenditures, but also provide employees with a better healthcare experience,” said Deep Nishar, Senior Managing Partner of Investment Advisors at SoftBank. “The company will continue to expand its operations in the United States, and we are delighted to accompany them on their journey of growth.”

The SoftBank Vision Fund, jointly established in 2016 by the Saudi Public Investment Fund and SoftBank Group, is a venture capital firm headquartered in Japan that specializes in growth capital and late-stage startup investments. Its investment focus spans artificial intelligence, robotics, and semiconductor technologies, with primary investments directed toward companies in the fields of fintech, frontier technologies, health tech, real estate, and logistics.

PSP Investments, established in 1999, is one of Canada’s largest pension investment management firms. It manages a diversified global portfolio that includes equities, bonds and other fixed-income securities, as well as investments in private equity, real estate, infrastructure, natural resources, and private debt. Headquartered in Ottawa, the company maintains offices in Montreal, New York, London, and Luxembourg.

DFJ Growth, established in 2006, is a global venture capital and private equity firm focused on early- and late-stage investments, primarily targeting technology companies in their growth phase. Headquartered in Silicon Valley, DFJ Growth serves as the late-stage investment arm of the global venture capital firm Draper Fisher Jurvetson (DFJ).

G Squared was founded in 2011, focusing on cloud computing and big data, marketing, Mobile 2.0, new-era media, social mobile, and sustainable development. The company provides a wide range of services to its portfolio companies, helping them continue their mission to redefine industries and ensuring that management teams can focus on what they do best.

Founders Fund, established in 2005, is a venture capital firm based in San Francisco, California. Founders Fund focuses on investments across various stages, with a portfolio spanning consumer internet, biotechnology, aerospace and transportation, energy, fintech, artificial intelligence, advanced computing, robotics, and healthcare.

Google Ventures (GV) is the investment arm of Google, established in March 2008. Leveraging its own strengths, Google aims to support innovative and promising new technology companies by focusing on early-stage investments across multiple industries, including consumer internet, software, clean technology, biotechnology, healthcare, and other emerging sectors.

Maverick Capital is a global investment firm that has been investing in early-stage companies for over two decades. The company not only provides capital to its portfolio companies but also offers a focused, agile team of venture partners.

Mubadala Investment Company is a government-owned strategic investment fund headquartered in Abu Dhabi. Established by the government, the company’s strategy is built on long-term investment management that delivers strong financial returns and tangible social benefits to the emirate.

NEA is one of the leading firms in the global venture capital industry, with a mission to help entrepreneurs build and grow companies that transform how 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 acquired or merged.

Sun Life Financials, established in 1865, is an institution providing wealth management services to its global client base. Sun Life Financial is part of the Sun Life Financial group, with business operations spanning China, the United States, Bermuda, the United Kingdom, Hong Kong, the Philippines, Indonesia, and India.

(Compiled by Li Chengping)