Bright Health, a Minneapolis-based insurance startup, said on Wednesday that it had secured $80 million in venture funding.
The Series A funding round was led by Bessemer Venture Partners and New Enterprise Associates, both firms with ties to Silicon Valley. Boston-based Flare Capital Partners also joined in the round.
The startup is a digitally focused health insurance provider that says it “connects you with the top physicians and enhanced care … more easily than you ever thought possible” with the promise of “lower premiums and doctors that are invested in relationships.” Though few details are known, the approach appears to be similar to a health maintenance organization, providing care through partnerships with specific health systems.
“Bright Health’s model is unique in that it gets everyone to work together instead of against each other,” NEA partner Mohamed Makhzoumi said in a statement.
Bright Health was founded by a number of high-profile people in the health care space – the cofounders of the company are Bob Sheehy (former CEO of UnitedHealthcare), Kyle Rolfing (cofounder/former CEO of Definity Health and RedBrick Health) and Tom Valdivia (a serial entrepreneur and chief health consumer officer at Definity Health).
The company isn’t the only startup in the Twin Cities trying to shake up the health care market. In January, RetraceHealth raised $1 million
from several health insurance and providers in the state, including Blue Cross and Blue Shield of Minnesota and HealthEast. Retrace aims to provide care through online video conferencing and in-home visits for a monthly fee or on an a la carte basis.