Total amount raised
$719 Millions
Latest funding date
5/1/2021
Location
Collective Health has successfully raised significant funding across multiple rounds, with notable investors such as DFJ Growth and G Squared. The company offers a modern third-party administrator service that integrates health benefit administration, navigation, and advocacy.
Keep reading to explore the intricacies of Collective Health's fundraising journey and the investors backing this innovative platform.
What Is Collective Health?
Collective Health, founded in 2013 by Ali Diab and Rajaie Batniji, is based in San Francisco, California. The company provides a modern third-party administrator (TPA) service that integrates health benefit administration, navigation, and advocacy.
With a workforce of 501-1000 employees, Collective Health aims to streamline the health benefits experience for employers and employees alike. Their platform brings together medical, dental, vision, pharmacy, and program partners into a single, connected solution.
By reducing administrative burdens and guiding employees toward healthier lives, Collective Health helps companies achieve better health outcomes and financial savings. For more details, visit their official website or their Crunchbase profile.
How Much Funding Has Collective Health Raised?
- Series A
- Amount Raised: $6M
- Date: January 2014
- Lead Investors: Founders Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial platform and bring the product to market.
- Series B
- Amount Raised: $32M
- Date: March 2015
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
- Series C
- Amount Raised: $81M
- Date: October 2015
- Lead Investors: Google Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market penetration.
- Series D
- Amount Raised: $110M
- Date: February 2018
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the technology and expand customer base.
- Series E
- Amount Raised: $210M
- Date: June 2019
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance service offerings.
- Series F
- Amount Raised: $280M
- Date: May 2021
- Lead Investors: Health Care Service Corporation
- Valuation at Round: $1.5 billion
- Motivation Behind the Round: To scale the technology platform and expand reach.
Total Amount Raised: $719M. Current Valuation: $1.5 billion.
Key Investors
- Health Care Service Corporation (HCSC)
- Details: HCSC is the largest customer-owned health insurer in the United States, operating in five states. It provides a range of health insurance products and services to its members.
- Investment Focus Areas: Health insurance, healthcare services.
- Notable Investments: Collective Health.
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is a large investment fund focused on technology-driven companies. It aims to support transformative technologies and innovative business models.
- Investment Focus Areas: Technology, AI, robotics, IoT.
- Notable Investments: Uber, WeWork, Slack.
- New Enterprise Associates (NEA)
- Details: NEA is one of the world's largest venture capital firms, investing in technology and healthcare sectors. It has a global presence and a diverse portfolio.
- Investment Focus Areas: Technology, healthcare, energy.
- Notable Investments: Robinhood, Coursera, 23andMe.
- Founders Fund
- Details: Founders Fund is a venture capital firm known for investing in early-stage technology companies. It has a reputation for backing ambitious and innovative startups.
- Investment Focus Areas: Technology, healthcare, various stages.
- Notable Investments: Facebook, SpaceX, Palantir Technologies.
- G Squared
- Details: G Squared is a growth-stage venture capital firm that invests in technology companies. It focuses on companies that are scaling rapidly and have significant market potential.
- Investment Focus Areas: Technology, growth-stage companies.
- Notable Investments: Lyft, Spotify, Coursera.
What's Next for Collective Health?
With a fresh $280 million in funding, Collective Health is poised to scale its technology platform and expand its partner ecosystem. The partnership with Health Care Service Corporation (HCSC) opens doors to millions of potential users, starting with Blue Cross and Blue Shield customers in Illinois and Texas. This significant market opportunity aligns with industry trends towards digital health transformation and personalized healthcare guidance.
Future fundraising seems promising, given the involvement of high-profile investors like SoftBank Vision Fund and NEA. However, challenges such as navigating the fragmented healthcare system and ensuring seamless integration with various partners remain. Maintaining high member satisfaction rates as they scale will also be crucial for sustained growth.
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