Bright Health picks up $200 million in latest Series C

Insurance startups are definitely a new fad, with a growing number of them receiving eye-popping sums of money from venture capitalists. One of the most ambitious insurance startups has now received a whopping $200 million in a latest Series C round of funding. The firm is called Bright Health and it aims to provide medical coverage for individuals as well as families at affordable prices. Based in Minneapolis, Bright Health was founded by Bob Sheehy, Kyle Rolfing, and Tom Valdivia, all of whom have been former executives in the healthcare sector.

The startup currently operates in New York City, Ohio, Alabama, Arizona, Colorado, and Tennessee. The new funding will most likely be utilized in expansion to newer cities as well as formulating additional policies. What makes this deal worth noting is that the latest round of funding takes the valuation of Bright Health to an amazing $950 million, up from $400 million in 2017 when it received $160 million in Series B funding. Venture capital firms that participated in this round include Meritech Capital, Declaration Partners, Greycroft, Redpoint Ventures, and others. The insurance technology industry also called insurtech has only recently been in the spotlight, given the newer innovations churned out by startups.

As they say, necessity is the mother of invention; the sky-high costs of healthcare in the United States can be identified as a likely factor that has spawned innovations in the insurance industry.