Collective Health, an employee benefits platform that uses predictive analytics to match employees with programs, has raised $205 million in a Series E funding round led by SoftBank. New backers PSP Investments, DFJ Growth and G Squared also participated alongside returning backers Founders Fund, GV, Maverick Ventures, Mubadala Ventures, NEA and Sun Life.
WHAT THEY DO
Since its launch in 2013, the San Francisco-based company’s health benefits platform has grown to cover more than 200,000 individuals within nearly 50 enterprise clients. Promising an alternative to hectic multi-vendor implementations, Collective Health’s suite of software offers a centralized hub for employers to manage members, conduct administrative tasks, optimize networks and point solutions, and gauge performance. Members, meanwhile, have access to an online and mobile portal that handles benefit navigation and, with the help of predictive analytics, matches members to the programs that would most benefit them.
“[Collective Health’s] innovative business model and technology platform are not only helping employers understand and optimize their healthcare spend, they are also providing employees with a better healthcare experience,” Deep Nishar, senior managing partner at SoftBank Investment Advisers, said in a statement. “The company has continued to scale its business across US employers, and we are excited to help them drive further innovation and adoption in the approximately $1.2 trillion employer health insurance industry.”
WHAT IT’S FOR
Collective Health wrote in its announcement that it would be targeting new strategic partnerships within the US; bumping up its sales, engineering and customer experience teams; and developing new capabilities to its platform. This latter goal will be specifically focused on features to reduce administrative waste and burden, better guiding members to appropriate treatment and surfacing health trends and insights to employers.
THE LARGER TREND
While plenty of employers are increasingly offering digital and virtual technologies to their employees, the market is also beginning to see an uptick in platforms like Collective Health’s that intelligently manage members’ coverage networks and options. These include HealthJoy’s artificial intelligence-powered offering, which raised $12.5 million in March, and the consumer-centric League, which brought in $47.5 million just under a year ago.
ON THE RECORD
“We’re appreciative of our investors, both new and returning, in their commitment to supporting our mission to fix the deepest rooted problems in healthcare today,” Ali Diab, cofounder and CEO of Collective Health, said in a statement. “We’re excited to have the SoftBank Vision Fund lead the round given their proven track record of supporting category-defining companies, and they share our vision for a better healthcare experience. Whether working with more networks or helping facilitate direct relationships between employers and provider systems, we will continue to set the standard for the industry with a focus on the customer, providing the healthcare experience we all deserve.”