Collective Health, a startup that aims to disrupt the traditional health insurance industry by offering employers more flexibility and control over their employees’ coverage, has secured an impressive $81 million in Series C funding. This latest investment brings the total amount of money raised by Collective Health to $119 million.
A Personal Experience Sparks the Founding of Collective Health
The idea for Collective Health was born out of a personal experience had by co-founder Ali Diab. In 2008, Diab’s gut twisted up on itself and he required urgent medical attention. As he was fighting to regain his health, his insurance company refused to cover the costs, leaving him with a hefty bill. This harrowing experience sparked Diab’s vision for a more efficient and affordable healthcare system.
Cutting Out Middlemen and Offering More Flexibility
Collective Health’s platform allows employers to choose which benefits they want to offer their employees, rather than being tied to a traditional health insurance plan. By cutting out the middlemen and offering more flexibility, Collective Health aims to make healthcare more affordable and easier to navigate.
Expansion Plans and Priorities
The $81 million in funding will be used to fuel expansion and growth across several areas of the business. The startup plans to double in size over the next few years, and has already achieved this milestone since its last round of funding. Some of the key priorities for Collective Health include:
- Hiring More People: To support the growing demand for its services, Collective Health will be hiring more people across various departments.
- Expansion into New Markets: The startup plans to expand its availability in other U.S. cities by hiring sales, marketing, and infrastructure teams.
- Partnerships and Cross-Promotion: Collective Health aims to form partnerships with other healthcare leaders to drive growth and expansion.
New Investor Google Ventures Sees Potential for Growth
The new funding round saw Google Ventures join as a new investor, while existing investors such as NEA, Founders Fund, Maverick Capital, Red Point Ventures, and RRE Ventures returned to support Collective Health. The total investment now stands at $119 million.
Collective Health’s Platform Continues to Grow
According to the company, its platform is on track to serve 30,000 members and process over $200 million in health insurance claims by the end of 2016.
"We’re working to shift the focus of health insurance from profits to people," said Diab. "Ultimately, this funding will give Collective Health a big boost in our mission to make the healthcare experience in our country something we can all feel proud of."
Related Topics
- Biotech & Health: Collective Health is part of the growing biotech and health sector, which includes startups like 23andMe and Fitbit.
- Startups: The startup scene is increasingly focused on disrupting traditional industries, with Collective Health being a prime example of this trend.
About the Author
Sarah Buhr is a reporter at TechCrunch, covering biotech and health startups. She has written extensively on topics such as 3D printed organs, one drop blood tests, and lab-grown hamburgers.
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