Sidecar Health, a US-based health insurance technology developer backed by mass media group Comcast, raised $125m yesterday in a series C round valuing it at $1bn.
Venture capital firm Drive Capital led the round, which included Bond, Cathay Innovation, GreatPoint Ventures, Menlo Ventures and Tiger Global Management. The company has secured $175m in funding altogether.
Founded in 2018, Sidecar offers health insurance policies utilising a scheme that enables customers to pay for care directly to providers using an affiliated Visa card. It claims the billing information is transparent and helps users save up to 40% over comparable traditional health insurance.
The funding will be used to boost Sidecar’s business and develop a product that complies with the Patient Protection and Affordable Care Act, a US federal healthcare reform commonly known as Obamacare.
The company is present in 16 states in the country and will further increase its geographic coverage this year.
Comcast unit Comcast Ventures participated in a $20m round for Sidecar in July 2020 that was led by Cathay Innovation and backed by Kauffman Fellows, Anne Wojcicki, GreatPoint Ventures and Morpheus Ventures, the last two having co-led an $18m round for the company the year before.
Sidecar co-founder and CEO Patrick Quigley said: “The plans we designed give Sidecar Health members two things: the money they need to purchase care and the information to make decisions that are right for them.
“By doing so, we are turning patients into purchasers of healthcare. This latest funding accelerates us on our mission to make healthcare more affordable and accessible for all Americans.”
