Insurance technology developer Bright Health has reportedly hit a $950m valuation after picking up significant backing from a swathe of venture capital firms.
Declaration Partners and Meritech Capital made their first investments in Bright Health through the $200m Series C round, which also saw backing from existing investors Bessemer Venture Partners, Greycroft, NEA and Redpoint Ventures.
The round gives Bright Health a valuation of almost $1bn according to PitchBook. Bright Health was valued at about $400m at the time of its $160m Series B round in the summer of 2017.
Bright Health said the latest funding would help grow the company’s balance sheet and support ongoing expansion into new markets at a pace expected to exceed Bright Health’s growth in 2019.
Meritech Capital Partners managing director Craig Sherman said, “As a growth investment fund, Meritech is looking for opportunities to invest in fast growing sector leaders whose potential to use technology will enhance the customer experience of large populations.
“Not only has Bright Health proved this is possible with its above average re-enrollment rates, but the data infrastructure that they are building has the potential to produce better health outcomes for millions of hardworking Americans and disrupt health insurance – and healthcare – as we have come to know and accept it.”
Mohamad Makhzoumi, general partner and head of healthcare services and healthcare IT investing at NEA, added, “I remain awestruck by the achievements that Bright Health has made since the company’s Series A financing in 2016.
“Bright Health is the entrant with the best chance of upsetting the staid status quo of the managed care industry.
“This financing positions the company well to capitalize on its transformational medical cost management results.”
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