USA – HealthCare.com, an insurtech platform, has raised US$180 million in funding for its AI-powered tools that connect consumers to health plans, bringing the company’s valuation to more than US$1 billion.
According to the company’s LinkedIn profile, the complexities of purchasing health insurance coverage can lead to consumers purchasing plans that do not completely meet their needs.
Consumers can compare hundreds of plans side by side on HealthCare.com’s data-driven platform to find the coverage that’s right for them.
The platform connects customers with healthcare products, such as its own proprietary insurance plans and insurance product bundles, and allows customers to buy multiple products in a single transaction.
In the last year, the service has assisted 5.6 million consumers in obtaining healthcare coverage, according to the company.
The oversubscribed round was led by Oaktree Capital Management and included US$130 million in senior non-convertible preferred stock and more than US$50 million in series C preferred equity.
Previous investors Axis Capital, Second Alpha, and Link Ventures joined the round as well.
“There is a crisis of cost, transparency and access stemming from complexity and a slow pace of change in healthcare and health insurance,” said HealthCare.com CEO Don Loonam in a statement.
“The consumer is at the center of our offering, and our ultimate product is their end-to-end healthcare experience. We aim to create an iterative relationship with the consumer that will span decades, improving lifelong wellness.”
The company, which was founded in 2014, will use the capital infusion to focus on product development, engineering, and data science, as well as hiring for several open positions.
Since 2021, its workforce has more than doubled to more than 370 employees.
“We’ve partnered with HealthCare.com since 2016 and have witnessed the company’s tremendous growth over the last couple of years,” added Axis Capital’s Linda Ventresca.
“The company’s ability to rapidly develop new proprietary insurance products and its innovative distribution model, along with its ability to quickly scale with the use of technology, allows it to solve complex challenges in the health insurance ecosystem.”
There has seen a surge in the number of insurtech startups. Bright Health recently closed a US$750 million funding round in which Cigna Ventures participated.
The Bright Health was founded in 2016 with a focus on a consumer-focused and tech-enabled insurance experience, intending to form exclusive partnerships with local health systems in each market.
InsurMedix received US$65 million in November for its platform that helps consumers find fertility treatment coverage.
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