Telecommunications and internet group SoftBank’s Vision Fund led a $205m funding round for US-based workplace health management technology provider Collective Health yesterday.
The round included GV, a subsidiary of internet and technology group Alphabet, as well as financial services firm Sun Life, PSP Investments, DFJ Growth, G Squared, Founders Fund, Maverick Ventures, Mubadala Ventures and New Enterprise Associates (NEA).
Collective Health supplies software that helps businesses manage their employee health plans more efficiently and easily, providing analytics tools that helps them monitor and control costs.
The capital will be used to beef up Collective Health’s technology capabilities, expand its range of healthcare partners and hire more sales, engineering and customer experience staff.
The round took the company’s total funding to $434m since it was founded in 2013. GV, Sun Life, Mubadala Ventures, NEA, Founders Fund and Maverick Ventures had provided $110m for the company in March 2018.
Collective Health had previously raised $81m in series C funding from GV, Founders Fund, NEA, Maverick, Redpoint Ventures and RRE Ventures in 2015, and its earlier investors include Formation 8, Subtraction Capital and Rock Health.
Deep Nishar, senior managing partner at SoftBank Investment Advisers, which manages Vision Fund, said: “With US healthcare costs at $3.65 trillion in 2018, Collective Health is reinventing the healthcare experience for companies and their employees.
“Their innovative business model and technology platform are not only helping employers understand and optimise their healthcare spend, they are also providing employees with a better healthcare experience.
“The company has continued to scale its business across US employers, and we are excited to help them drive further innovation and adoption in the approximately $1.2 trillion employer health insurance industry.”
