Health

Medicare Benefit startup Devoted Well being rakes in $1.15 billion in Collection D funding



Tech-enabled Medicare Benefit firm Devoted Well being closed a hefty $1.15 billion Collection D funding spherical led by Rebellion and SoftBank Imaginative and prescient Fund 2.

Returning buyers GIC, Andreessen Horowitz, Premji Make investments, Maverick, Frist Cressey Ventures and NextView Ventures in addition to new backers ICONIQ Development, Normal Catalyst, the Base10 Development Initiative and Emerson Collective additionally chipped into the increase.

Devoted will settle for one other $80 million for this funding spherical at a later date to accommodate one in all its present buyers, the corporate stated within the announcement. With this add-on funding, Devoted may have raised $1.23 billion in its Collection D and $1.99 billion up to now.

WHAT IT DOES

Based in 2017 by Government Chairman Todd Park, who beforehand cofounded each Athenahealth and Castlight Well being, and his brother Ed Park, who additionally held high positions at Athenahealth, Devoted is in search of to enhance the well being of older adults by means of its stack of healthcare companies.

It has created a mix of companies that embody Medicare Benefit well being plans, partnerships with suppliers and the corporate’s in-house digital and at-home care supplier, Devoted Medical. All are powered by Orinoco, Devoted’s end-to-end knowledge analytics platform.

“Devoted Well being is exclusive in that our members are on the absolute heart of the whole lot we do, and our core product is admittedly higher well being. We are actually saving, enhancing and lengthening lives for older Individuals every single day by means of our one-of-a-kind method,” Ed Park, cofounder and CEO of Devoted Well being, stated in an announcement.

The corporate at present operates throughout Florida, Texas, Ohio and Arizona, and has grown its membership to just about 40,000 members as of June. It boasts a income of $247.3 million by means of the primary six months of 2021, a 128% enhance in contrast with the identical interval final 12 months and a CMS star score of 4.5 for its first 12 months of eligibility for a Medicare Benefit efficiency score.

WHAT IT’S FOR

Devoted will use the money to help its nationwide growth.

“We’re very proud that others perceive and imagine within the worth of our mission and mannequin, and we’re very a lot wanting ahead to utilizing this capital to convey the Devoted Well being expertise to individuals throughout the nation,” Ed Park stated.

Consistent with that objective, the corporate lately launched protection in seven Chicago-area counties in Illinois. Customers in Prepare dinner, DuPage, Kane, Kendall, McHenry, Lake and Will counties can now enroll in Devoted’s well being plans for protection starting in 2022.

MARKET SNAPSHOT

Devoted has a historical past of scoring huge quantities of funding. For instance, in 2018, it landed $300 million in its Collection B increase.

Insurtech corporations have gotten fairly common, particularly within the Medicare Benefit house. Different notables embody Brilliant Well being, Clover Well being and Oscar Well being, all of which lately went public.

 



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