Alan Secures $45.19M Series B Funding to Expand Digital Health Insurance Coverage in France

On February 19, 2019, VCBeat (WeChat official account: vcbeat) learned that Alan, a French digital health insurance company, had completed a $45.19 million Series B financing round. The round was jointly invested by Index Ventures and DST Global, with the funds aimed at expanding Alan’s user base for digital health insurance in France, focusing primarily on small and medium-sized enterprises (SMEs) and freelancers.

Since 1986, Alan has been the first independent insurer to obtain authorization from the French Prudential Supervision and Resolution Authority (ACPR). Focused on user experience, Alan provides cost-effective digital health insurance plans to its customers. The company reported that from 2018 to the present, its insured base has grown from fewer than 5,000 individuals to 27,000, revenue has increased from under $3.95 million to $24.85 million, and its workforce has expanded from 14 employees to 64, with plans to scale the team to approximately 175 members by year-end.

Founded in Paris, France, in 2016, Alan is a digital health insurance company. On October 25, 2016, Alan completed a $13 million seed funding round, with investments from Partech, CNP Assurances, AGORANOV, and Power Financial Corporation. On April 10, 2018, the company secured a $23.8 million Series A financing round, led by Partech, Xavier Niel, Portag3 Ventures, Index Ventures, and CNP Assurances. Currently, the company’s total assets amount to $86 million.

According to the 2017 EU Health at a Glance report, voluntary health insurance plays a significant role in France by providing supplementary coverage for medical products and services subject to co-payments under Social Health Insurance (SHI), such as eyeglasses and dental care. Analysis shows that responsibilities for managing the health system are divided between the state and SHI schemes, with public funding accounting for approximately 80% of total health expenditure. Voluntary health insurance funds account for about 14% of total health expenditure and cover 95% of the population.

Index Ventures, founded in Geneva, Switzerland, in 1996, is a multi-stage international venture capital firm with offices in San Francisco and London.

DST Global (DST), founded by Yuri Milner in 2009, is a global investment firm primarily focused on the internet sector, investing in high-growth companies such as Facebook, Twitter, Snapchat, Airbnb, Alibaba, and Xiaomi.

Partech is a global venture capital firm with offices in San Francisco, Paris, Berlin, and Dakar. It provides funding, operational expertise, and strategic support to companies at the seed, venture, and growth stages, primarily investing in the software, digital brand, and services sectors.

CNP Assurances is a personal insurance platform that primarily offers life insurance, pension insurance, and personal risk and protection products.

Portag3 Ventures, established in 2016, is a venture capital firm primarily investing in early-stage startups in the fintech sector.

(Compiled by Zhang Yaping)