US-based health insurance software provider Collective Health raised $81m yesterday in a series C round backed by Google Ventures, the corporate venturing vehicle for internet and technology holding company Alphabet.
Venture capital firms New Enterprise Associates (NEA), Founders Fund, Maverick Capital, Redpoint Ventures and RRE Ventures also participated in the round.
Founded in 2013, Collective Health produces software that enables businesses to design and build their own employee health insurance plans, processing and adjudicating claims while securing medical, dental, vision and pharmaceutical services at the best rates.
The company has recently formed partnerships with health insurance providers Anthem and Blue Shield of California, and expects its platform to process more than $200m of claims over the course of 2016 for a total of 30,000 customers. It will use the series C cash to expand out of its home state of California.
Ali Diab, CEO of Collective Health, said: “This significant infusion of capital comes at the perfect moment, enabling us to make our solution available to companies across the US.
“The funding will also enable us to continue to invest in building out our world-class team, forge new relationships with key partners and significantly grow our customer base.”
Collective Health has now raised $119m in venture funding altogether, having secured $38m across two rounds, the second of which closed in March this year. Its earlier investors were NEA, Founders Fund, Formation 8, Redpoint, RRE, Subtraction Capital and Rock Health.