Centivo has quickly become one of the biggest startup stories in Buffalo.
A $51 million round of venture capital is set to continue that narrative for a long time to come.
Centivo represents a big idea in the health-tech marketplace, using data and building relationships to drive down the cost of health care while seeking to simultaneously improve quality. Employers are saving at least 15% on the platform, which will be live in about 10 major American markets by the end of 2022, according to company data.
The same data set shows that Centivo members make more visits to their primary care doctor while spending less time at the emergency room, urgent care or inpatient hospital stays.
The company was founded by one of the most successful tech entrepreneurs in Buffalo history, Ashok Subramanian, and announced this summer that it was moving its corporate headquarters to Buffalo (Subramanian retains extensive personal and professional ties here, though he lives in New York City).
One of Centivo’s earliest financial backers is Buffalo-based Rand Capital Corp., which now counts Terry and Kim Pegula as majority shareholders. Rand invested a total of $800,000 into the company in previous funding rounds.
And finally, Centivo 's $51 million in venture capital brings its total VC funding up to $118 million since it was founded five years ago. The funding will fuel the company’s growth as it eyes a national expansion.
“We see this as a chance to help more employers, more employees and their families get affordable high-quality care,” said Stephanie Argentine, chief people officer at Centivo. “It’s also an opportunity for us to grow and invest in our people.”
Argentine is among three top employees who now lead the Buffalo office, including head of operations Paul Wann and finance chief Tina Passariella.
The company is at capacity at its main office off Cayuga Drive in Cheektowaga, from which about 52 employees of it 180 employees work. It is now opening new space on the fifth floor in the University at Buffalo’s Gateway Building in downtown Buffalo, part of a partnership with UB’s Institute for Genomics. The space will accommodate Centivo’s expansion as it hires across technical and business roles, along with a workforce program that partners with Houghton College, Say Yes Buffalo, Canisius College and Erie Community College to introduce underemployed workers to new careers in claims and customer service roles.
Centivo expects to hire “dozens” of employees in Buffalo before year’s end.
“It’s exciting to be at the point where we’re receiving additional investment to fuel our growth,” Argentine said. “That’s what we’re focusing on internally. It’s a combination of adding people, and processes and technology that helps make them more efficient.”
