Bright Health, an insurance startup led by a group of healthcare veterans that includes former UnitedHealthcare CEO Bob Sheehy, has closed on a $200 million round of venture capital that will go toward expanding into new markets, the company said Thursday.
Bright's $200 million Series C is likely the largest venture capital raise in Minnesota history. The previous holder of that record? Bright Health. Just last year, the company raised $160 million in a round led by Greenspring Associates. Bright's backers from last year's raise, including Bessemer Venture Partners, Flare Capital and Cross Creek Advisors, also participated in the new round. Bright brought on two new investors for its Series C: New York-based Declaration Partners and Palo Alto, California-based Meritech.
Minneapolis-based Bright has now raised more than $440 million since it was founded in 2016.
Bright Health is now valued at approximately $950 million, according to Pitchbook. If Pitchbook's calculations are correct, that puts Bright just $50 million away from "unicorn" status. The company declined to comment to the Minneapolis/St. Paul Business Journal about Pitchbook's number.
Bright started out targeting the individual health-insurance market, but has since expanded into the Medicare Advantage area. It partners with a sole healthcare provider in each city it serves. Bright started out selling coverage in Colorado and has since expanded into new states including New York, Arizona, Ohio and Tennessee. Bright said in a release that it plans to triple its geographic footprint next year.
"Bright Health has continued to execute at a fast pace towards our goal of disrupting the old healthcare model that places insurers at odds with providers," Bright Health CEO Bob Sheehy said in a statement.
