InsurTech company Sidecar Health has reached unicorn status after the close of a $125m Series C round put its valuation at $1bn.
Capital from the round will be used to accelerate its growth and support the launch of its Affordable Care Act offering for federal and state exchanges. Funds will also be used to hire more staff and build new products.
The platform is currently available in 16 US states, but is hoping to continue its expansion efforts during 2021.
Drive Capital served as the lead investor, with participation also coming from BOND, Tiger Global and Menlo Ventures. Furthermore, Cathay Innovation and GreatPoint Ventures returned as investors to the round.
Sidecar leverages a “cash prize” model which enables members to pay lower “self-pay” or “cash” prices to their healthcare providers instead of higher rates negotiated by insurance companies.
The health insurance platform enables consumers to personalise their coverage with what protection they need and pay for medical expenses through a dedicated card that is covered by their plan.
Its platform offers lower monthly premiums, access to see any doctor, and benefits account to over 170,000 medical services and prescription drugs.
Sidecar Health 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.”
Since the company was founded in 2018, Sidecar has raised a total of $175m in funding.
Digit Insurance also became an InsurTech unicorn earlier in the year. The Indian company enables consumers to buy vehicle, travel, property, flight delay, health, mobile, holiday home and shop insurance.
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