Insurance provider Health Care Service Corporation led a $280m series F round yesterday for Collective Health, the US-based operator of a healthcare benefits management product.
Insurance firm Sun Life and telecommunications and internet group SoftBank’s Vision Fund also participated in the round, which valued the company at $1.5bn according to Bloomberg.
The round was filled out by DFJ Growth, Founders Fund, G Squared, Maverick Ventures, New Enterprise Associates (NEA), PFM Health Sciences and undisclosed additional investors. It increased Collective Health’s funding to $714m to date.
Founded in 2013, Collective Health operates a customisable software platform that enables companies to manage their employees’ healthcare coverage, including medical, dental and vision care.
Ali Diab, co-founder and chief executive of Collective Health, said: “This latest round of funding enables us to further our vision of empowering American workers and their families to live healthier lives.
“By expanding the scope and reach of our platform and partner ecosystem, we can broadly deploy the infrastructure for the next generation of healthcare.”
SoftBank Vision Fund led a $205m round for the company in mid-2019 that included GV, a corporate venturing unit owned by internet and technology group Alphabet, in addition to Sun Life, PSP Investments, DFJ Growth, G Squared, Founders Fund, Maverick Ventures, Mubadala Ventures and NEA.
Collective Health had already raised $110m from GV, Sun Life, Mubadala Ventures, NEA, Founders Fund and Maverick Ventures the year before.
GV, Maverick Ventures and existing backers Founders Fund, NEA, Redpoint Ventures and RRE Ventures had previously supplied $81m of series C funding for the company in 2015. Formation 8, Subtraction Capital and Rock Health were among its earlier investors.