Investors just dunked $500 million in insurtech startup Bright Health, with the fresh funds coming just in time for open enrollment season.
Founded in 2015, Bright Health offers a range of individual, family and Medicare insurance plans. The company said it operates in 43 markets across 13 states, and provides benefits coverage to more than 200,000 members. The startup’s network of doctors, clinics and hospitals deliver virtual and direct clinical care to more than 120,000 patients.
Bright Health said it generates $1.2 billion in annual net revenue, and has so far raised $1.5 billion in venture funds. The Minneapolis-based insurtech startup plans to spend the Series E cash on continuing to grow — particularly in Austin. The 1,140-person company currently has 24 open positions listed, with available roles in Austin including a senior UI/UX designer, data engineer, senior cloud engineer and more. A spokesperson said the company plans to bring on a total of 48 more Austin-based employees before the end of the year.
The upgraded tech team will help Bright Health add small group and employer-based insurance plans next year, CEO G. Mike Mikan said.
“This funding allows us to continue to scale our transformative model and fulfill our purpose of lowering healthcare costs while improving outcomes, experience and access,” Mikan said in a statement.
Tiger Global Management, T. Rowe Price Associates, Blackstone, NEA, Bessemer Venture Partners and Greenspring Associates contributed to the Series E round. Bright Health isn’t the only insurtech startup with Austin ties to receive funding recently.
In August, Sana Benefits raised $20.8 million to upend small business insurance; in July, Hippo Insurance raised $150 million, with plans to hire 310 individuals at its new Austin office; and in late June, the AgencyKPI platform for insurance agents raised $5 million.