San Francisco-based healthcare technology company Collective Health announced on Monday that it has acquired US$205mn in its latest funding round, led by Japan’s Softbank Vision Fund.
Collective Health announced in a statement that it plans to use the money to continue improving its platform, which currently serves over 200,000 people across over 45 enterprise clients - including Driscoll’s, Pinterest, Red Bull, Restoration Hardware, Zendesk and more - across multiple industry verticals.
With siloing and overreliance on legacy systems a common thread throughout the US healthcare industry, Collective Health is working to reinvent health plans, both for employers and the populations they cover under one, unified software platform. The company has four patents pending across its product suite.
The new funding will support Collective Health’s expansion of its product and engineering team to accelerate development in core areas, including: Reducing administrative burden and waste, guiding members to treatments that meet their health needs while helping to reduce costs, and delivering insights to employers that point the way to improved population health.
“With U.S. healthcare costs at $3.65trn in 2018, Collective Health is reinventing the healthcare experience for companies and their employees. Their 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,” said Deep Nishar, Senior Managing Partner at SoftBank Investment Advisers. "The company has continued to scale its business across U.S. employers, and we are excited to help them drive further innovation and adoption in the approximately $1.2 trillion employer health insurance industry.”
In addition to Softbank, new investors PSP Investments, DFJ Growth and G Squared made contributions, alongside existing Collective Health investors including Founders Fund, GV, Maverick Ventures, Mubadala Ventures, NEA, Sun Life, and other leading investors.
“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,” said Ali Diab, Co-founder and CEO of Collective Health. “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.”