HealthCare.com, a digital healthcare platform that connects consumers, service providers and payers, has raised a whopping $180 million.
The investment includes $130 million in senior non-convertible preferred equity and more than $50 million of series C preferred equity in an oversubscribed round led by Oaktree Capital Management. Other investors included founders and existing investors Axis Capital, Second Alpha and Link Ventures.
HealthCare.com leverages deep data assets and AI algorithms to match consumers with an increasingly wide array of products in the healthcare space. The platform also offers its own proprietary insurance plans and customizable insurance product bundles. Direct-to-consumer enrollments were up 97% in 2021, the company noted.
“We are thrilled to partner with premier investors who recognize that HealthCare.com is positioned for its next phase of explosive growth,” said Don Loonam, CEO of the business. “There is a crisis of cost, transparency and access stemming from complexity and a slow pace of change in healthcare and health insurance. The consumer is at the center of our offering, and our ultimate product is their end-to-end healthcare experience. We aim to create an iterative relationship with the consumer that will span decades, improving lifelong wellness.”
The company plans to use the funding to invest in data science, product development and engineering, as well as hire for several key roles. The company’s 370-person workforce has grown 130% since January 2021, with the team based in 15 states, in addition to Guatemala, Thailand and the Netherlands.
Co-Founders Jeff Smedsrud, Jose Vargas and Howard Yeh will all remain active in senior leadership roles within the company. As part of the funding round, Brian Laibow, managing director and co-head of North America for Oaktree's global opportunities strategy, and Linda Ventresca, chief strategy officer for AXIS Capital, have joined the HealthCare.com board of directors.
“We’ve partnered with HealthCare.com since 2016 and have witnessed the company’s tremendous growth over the last couple of years,” Ventresca said in a statement. “The company’s ability to rapidly develop new proprietary insurance products and its innovative distribution model, along with its ability to quickly scale with the use of technology, allows it to solve complex challenges in the health insurance ecosystem.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."