Wellnecity, a Winston-Salem health care startup, raised $3.16 million in Series A funding with the help of Sopris Capital, a Denver-based investment firm that specializes in health care.
Founded and headed by John Quinn, Wellnecity uses a proprietary technology platform, called ProActive Benefits Management, to help self-insured employers manage the rising cost of health care while improving outcomes for workers.
Sopris has 20 years of experience investing in health care companies and this early stage investment from the firm will allow Wellnecity to scale its platform. The Series A funding came from 37 investors, according to a filing with the U.S. Securities and Exchange Commission.
“Partnering with Sopris Capital is key to our company’s expansion in 2022 and beyond,” Quinn said. “This significant funding will allow us to accelerate growth of our client base and increase market awareness in this distinctive new category for self-insured employers.”
Founded in 2015, Wellnecity leverages data analytics and works with brokers, third-party administrators and pharmacy benefit managers to coordinate efforts to provide insights and transparency, allowing employers to offer benefits tailored to the needs of their employee population.
“As the cost of employer health plans continues to increase, maintaining the status quo in health plan management is simply not sustainable for self-insured organizations,” said Andrew Paul, founder and CEO of Sopris Capital. “Wellnecity offers a simple solution to a complex problem — giving employers unparalleled control and visibility into their health benefits.”
Wellnecity takes a vendor-agnostic approach, allowing self-insured employers of all sizes to better manage their health plans.
“Wellnecity is here to break the status quo in health plan management,” Quinn said. “This investment is critical to our go-to-market strategy and helping us put the power back in the hands of the employer.”
The health insurance management company currently oversees more than 160,000 covered lives. Its ProActive Benefits Management platform is used by clients in a range of industries and sizes, including health care provider Kindred at Home and companies within the Texas Pacific Group portfolio.
“Wellnecity’s impressive leadership team has managed to find that unique balance between advanced data analytics and the human touch,” said Jason Smith, a partner at Sopris Capital. “They are not only a critical piece of the health benefits technology stack; they serve as an extension of the self-insured organization’s health benefits team.”
Previous filings with the SEC show that Wellnecity had raised $3.18 million prior to this round of funding.
