US-based health plan management platform Flume Health secured $30m on Friday in a series A round led by Optum Ventures, the corporate venturing arm of pharmacy benefits manager Optum.
Health insurance provider Cigna also took part in the round, investing through its Cigna Ventures subsidiary. The company has now raised a total of $40m since it was founded in 2017.
Flume has built a software platform that helps manage healthcare insurance plans, which have been typically handled by third-party administrators (TPAs) in the United States that process claims, employee benefits and retirement schemes for health insurers, individuals and organisations in return for a fee.
The company’s platform can provide individual services that users can pick from, as opposed to TPAs that offer bundled packages of products, and it intends to help healthcare companies in its home country create customised and affordable health plans.
Cedric Kovacs-Johnson, Flume Health’s chief executive, said: “Reaching our series A milestone in just six months is a testament that our investors share our values and believe in Flume’s ability to help reinvent the shape and texture of health plans for American healthcare consumers.
“We are excited to help people through plans that meet their unique needs and are tailored to their lifestyle.”
Jon Sklaroff, a principal at Optum Ventures, added: “Flume’s focus on simplifying health plan design and management is critical to helping create health plans that truly fit the lifestyle and needs of consumers.
“We believe their health plan administration tool, built on a modern digital architecture, will enable companies to deliver individualised health plans and personalised healthcare at scale.”
The company had received $6m May 2021 through a second seed round that was led by Crosslink Capital and backed by Route 66 Ventures, Accomplice, Founder Collective, Primary Venture Partners and angel investor Ryan Simonetti.
Primary Venture Partners, Founder Collective and Accomplice had already participated in Flume’s $4.05m seed round two years before, investing alongside Entrepreneurs Roundtable Accelerator and unnamed individuals.
Another corporate-backed company that provides a similar service is Springbuk, a care data analytics software provider backed by health insurer Blue Cross and Blue Shield of North Carolina and Echo Health Ventures, the VC firm jointly founded by healthcare provider Cambia Health Solutions.
Optum Ventures has been active in recent weeks, having invested in companies including Scipher Medicine, Secureframe, Somatus and Equip Health last month.
