US-based health management system developer Collective Health raised $110m in funding yesterday from a consortium featuring GV, the early-stage investment arm of internet and technology conglomerate Alphabet.
Financial services firm Sun Life Financial also took part, as did Mubadala Ventures, the $400m vehicle established by telecommunications group SoftBank and Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, in October 2017.
The round was filled out by venture capital firms New Enterprise Associates (NEA), Founders Fund and Maverick Ventures.
Founded in 2013, Collective Health has created a software platform that employers can use to manage their corporate health insurance schemes.
The system tracks medical claims, employee data and the usage of healthcare programs to help ensure users get access to the best help at the right time.
Sun Life invested as part of a strategic partnership that will involve Collective Health integrating the corporate’s stop-loss offering – a type of insurance that protects employers against unpredictable or catastrophic losses arising from medical claims – into its product.
The companies will also work together on enhanced data analytics and risk modelling technologies. The funding will support the opening of a Collective Health office in Chicago as it grows its presence in the states of Georgia, New York and California.
Collective Health has secured $229m in funding to date. GV previously backed its $81m series C round in 2015, participating alongside NEA, Maverick, Founders Fund, Redpoint Ventures and RRE Ventures.
The company’s earlier investors also include Formation 8, Subtraction Capital and Rock Health.
Dan Fishbein, president of Sun Life Financial US, said: “We share a deep client focus with Collective Health, and are thrilled to work more closely with their team to innovate and deliver smarter, more flexible products.
“Together, we will transform the benefits experience for self-funded employers and their employees.”