Bright Health Secures $200 Million Series C Funding to Disrupt Traditional Health Insurance Models

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that U.S. health insurance startup Bright Health has completed a $200 million Series C financing round. The investors in this round included new investors Declaration Partners and Meritech Capital, as well as existing investors Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates (NEA), Redpoint Ventures, and Town Hall Ventures.

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. Bright Health was established by a group of seasoned professionals with extensive experience in the healthcare sector. By collaborating with leading providers within the healthcare system, the company seeks to foster stronger connections between healthcare consumers and service providers.

Image: Bright Health, from the official website

Bright Health’s Innovative Medical Partner Health Plan Model, launched in 2016, is specifically designed to deliver superior, comprehensive healthcare services through health systems. This plan eliminates the traditional friction between payers and providers, optimizing the experience for consumers and patients.

Through its exclusive Care Partner Health Plans offered in local communities, Bright Health is helping consumers and healthcare providers achieve better health outcomes by making healthcare simpler, more affordable, and personalized. Bright Health currently offers a range of individual, family, and Medicare plans in Alabama, Arizona, Colorado, New York City, Ohio, and Tennessee.

Bright Health stated that the Series C funding round will strengthen the company’s balance sheet and support its continued expansion into new markets. In April 2016, Bright Health completed an $80 million Series A financing; in June 2017, the company announced the completion of a $160 million Series B financing. With this latest round, Bright Health has raised over $440 million across three rounds of equity financing.

The company plans to use these funds to realize its vision of bringing its proven partner health program model to next-generation healthcare, providing members with efficient, predictable, and low-cost services. Additionally, the company intends to leverage this capital for expansion in 2020 and beyond, while strengthening its consumer-centric technology platform.

Image from the Bright Health official website

Bob Sheehy, CEO of Bright Health, stated, “Bright Health will continue to rapidly implement our plan to dismantle the outdated healthcare model that fosters discord between insurers and providers. With our recently announced expansion plans, we will triple our geographic coverage in 2019. Furthermore, Bright Health’s current high reenrollment rate indicates that consumers are ready to embrace this improved healthcare experience, particularly when prices are competitive.”

“Mohamad Makhzoumi, General Partner at NEA and Head of Healthcare Services and Health IT Investments, said, ‘I am impressed by what Bright Health has achieved since its Series A financing in 2016. The company is best positioned to disrupt the entrenched status quo in the healthcare administration industry. We are thrilled to continue working with Bob and the entire Bright Health team.’”

In addition, Bright Health offers Individual and Family Plans (IFP) as well as Medicare Advantage (MA) plans. Through these two programs, the company can support consumers from childhood through retirement, enabling them to build lifelong relationships with healthcare providers.

Meritech Capital, founded in 1999 and headquartered in California, USA, is a leading late-stage venture capital firm. The firm does not engage in early-stage investments, focusing instead on growth-stage and private equity investments. Its investment focus is on high-potential companies in the high-tech sector, with over $2.6 billion in assets under management.

Bessemer Venture Partners, founded in 1911 and headquartered in California, USA, is a well-established private equity firm. The firm’s investment preferences span mobile internet, healthcare, energy and materials, consumer lifestyle, education, financial payments, hardware, and e-commerce. Engaging in investments across all stages, Bessemer has built a global portfolio of more than 130 companies and manages over $4 billion in capital.

Cross Creek Advisors, established in March 2006 and headquartered in Utah, USA, is committed to investing in high-quality late-stage companies and top-tier venture capital funds regarded as such by the industry, through its direct investment and fund-of-funds strategies. The firm’s investment strategy aims to strengthen the connection between private and public investors and deliver above-market returns for limited partners.

Flare Capital, founded in October 2013 and headquartered in Massachusetts, USA, is a team of proven healthcare technology venture capital investors renowned for its strategic industry resources, insights, and comprehensive commitment to entrepreneurial success. In 2015, Flare Capital raised one of the largest venture capital funds in the healthcare sector to make early-stage and emerging growth investments in healthcare technology innovation.

Greenspring Associates, founded in 2000 and headquartered in Maryland, USA, is a global leader in venture capital. The firm provides hybrid funds and tailored partnership solutions to a diverse base of institutional and individual investors across North America, Europe, Asia, the Middle East, and Australia. It currently manages over $7.3 billion in assets.

Greycroft Partners, established in August 2011 and headquartered in Los Angeles, is a leading venture capital firm focused on the internet and mobile markets.

NEA, 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 fields of information technology and healthcare/biomedical technology. 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.

Redpoint Ventures was founded in 1999 as a venture capital firm originating from Silicon Valley. It established its office in China in 2005 and launched its China fund in 2016, which is independently operated by the Redpoint China team. Following the establishment of the China fund, the total number of funds managed globally by Redpoint Ventures increased to ten, with total assets under management reaching $4 billion. As of January 2017, Redpoint Ventures had invested in more than 400 technology companies worldwide, including HomeAway, Netflix, MySpace, Path, and Qihoo 360.

Town Hall Ventures was established in May 2018 and is headquartered in New York, USA. The firm aims to improve the U.S. healthcare market by investing in technology companies, transforming healthcare delivery and health outcomes for the most underserved and high-need populations across the country.