Minneapolis-headquartered insurance startup Bright Health has raised funds amounting to $200 million in Series C funding round. The round was led by Tom Valdivia, a former Definity Health executive.
The valuation of the company, following the round has reached at $950 million. New investors Declaration Partners and Meritech Capital participated in the round, with backing from Bessemer Venture Partners, Greycroft, NEA, Redpoint Ventures and others.
The company is planning to utilize these funds to rapidly expand into new markets, planning to triple its geographic footprint in 2019.
“Bright Health has continued to execute at a fast pace towards our goal of disrupting the old health care model that places insurers at odds with providers,” Sheehy said in a statement. “[Its] current high re-enrollment rate shows that consumers are ready for this improved healthcare experience – especially when it is priced competitively.”
With this round, the total funding of the firm has reached a total of $440 million since early 2016. VCs have deployed significantly more capital to the insurance technology (insurtech) space in recent years.
The opportunity here for investors and startups alike is huge; the health insurance market alone is forecasted to be worth more than $1 trillion by 2023. Companies that can leverage technology to create consumer-friendly, efficient and, most importantly, reasonably priced insurance options stand to win big.