Enterprise health management startup Collective Health has added another $110 million to the coffers from existing high-profile investors such as Founders Fund and Alphabet’s investment arm GV, bringing the total now raised to a cool $230 million.
The structure is partially a follow-on from a previously unannounced C-1 for $30 million and another $80 million in Series D funding. New investor Mubadala joins the gang, making this one of the first investments from the Abu Dhabi-based fund.
Ali Diab and co-founder Rajaie Batniji formed Collective Health as a way to cut out health insurance and instead offer employers a way to pick and choose which things they want covered for their employees. The hope was this would make for a less expensive and more efficient process.
Today, the company caters to the health needs of more than 120,000 individuals — up from 30,000 in 2015 — across several high-profile employers, including RH (formerly Restoration Hardware), as well as tech companies such as Palantir, SpaceX and eBay.
Canadian insurer Sun Life Financial Inc. also pitched in on the latest round and there are plans in the works to bundle Collective Health’s services with Sun Life’s insurance coverage for U.S. employers.
Along with the funding announcement, the company revealed a new employer healthcare management system. Calling it the first “Workforce Health Management System,” this platform promises to serve up data in a transparent and easy to access way to enable employers to make better decisions for those they hire.
“Employers’ ability to drive positive change in healthcare is being hampered by antiquated technology that keeps all pertinent healthcare and financial information locked in disparate, legacy systems,” Diab said in a statement. “The Collective Health Platform eliminates this fragmentation, removing inefficiencies, lowering costs, and improving the experience for American employers and workers.”
The new funding will be used to “accelerate development” of the platform and hire more people within the company to support a rapidly growing base of new customers.