Enterprise health tech startup Collective Health raises $205 million
The SoftBank Vision Fund made another huge investment in a promising startup, this time in the healthcare technology industry. Collective Health announced a $205 million round of new funding this week led by the mega-fund.
Additional participation came from PSP Investments, DFJ Growth, and G Squared, as well as 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.”
Collective Health’s healthcare platform has 80 integrated health partners to-date, ranging from local and national medical PPO networks and commercial-focused provider systems to emerging digital health solutions. Since 2013, enterprise clients have used the platform to find cost efficiencies and reduce complexity as an alternative to outdated systems with less transparency.
“With U.S. healthcare costs at $3.65 trillion 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.”
“With U.S. healthcare costs at $3.65 trillion 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.
According to the press release, the capital will be used to speed product adoption, strengthen its technology and deepen partnerships. Growth plans also include building its national sales, engineering and customer experience teams in San Francisco, Chicago and Lehi, Utah.
Among Collective Health’s innovations is its patent-pending machine learning engine, CH Cortex™, which identifies individual member care needs and facilitates referrals to appropriate partners, facilities and providers for treatment.
“Sometimes working in benefits can feel like you're on the hamster wheel of problem solving,” said Alice Vichaita, Global Head of Benefits at Pinterest. “Collective Health is unparalleled and well beyond the industry standard, providing us the ability to better serve our people’s health demands while providing the type of healthcare experience our people want.”