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NEA, Google’s GV, Founders Fund, DFJ Growth and PSP Investments also participated in the round, which brings the San Francisco company’s total raised to $434 million, according to its Crunchbase profile.
Per itself, Collective Health’s mission is “to make it effortless to navigate, understand, and pay for healthcare” considering that so many employers today still rely on faxes and snail mail. Its software is designed to allow “self-funded employers to administer plans and control costs” from a centralized platform. According to its website, the company has more than 200,000 members across the United States and 45 “enterprise clients.” Besides Pinterest and Uber, it also names Zendesk, Red Bull and Restoration Hardware among its user base. In general, users come from a variety of industries including entertainment, gaming, publishing, retail, ecommerce, and transportation.
Collective Health aims to reduce administrative burden and waste via its “improved claims and payments technology.” The company also has a patent-pending machine learning engine, CH Cortex™, which it claims “identifies individual member care needs.”
In a blog posted today, co-founders Ali Diab and Rajaie Batniji said Collective Health plans to use the money in part to grow its product, engineering and sales teams. In addition to its headquarters in San Francisco and its engineering hub in Chicago, the company opened an office in Utah earlier this year that created “an operational hub.” Collective Health also plans to use the fresh capital to form “new partnerships with innovative health insurers, healthcare systems, and digital health companies.”
In a press release, Deep Nishar, senior managing partner at SoftBank Investment Advisers, said Collective Health’s 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.”
Indeed, the company appears to be growing at a healthy rate. At the end of last year, Collective Health said it had “a 100 percent renewal rate for eligible clients and grew its enterprise client base by more than 50 percent” in 2018. It also noted that it surpassed 500 employees during the year with plans to hire hundreds more in Utah.
Illustration: Li-Anne Dias