Small and medium-sized companies (SMBs) have for many years struggled with having the ability to supply their staff medical health insurance.
Sana, a startup that desires to make providing medical health insurance plans extra accessible to these companies, has raised $60 million in a Sequence B funding spherical.
Belief Ventures and Gigafund co-led the spherical, which brings the Austin, Texas-based startup’s whole raised to $107 million since its 2017 inception. Current backers embody American Household Ventures, mark vc, Breyer Capital, JAM Fund and Liquid 2. The corporate declined to disclose its valuation, saying solely that it had “roughly doubled” since its $20 million Sequence A extension final October.
Put merely, Sana’s mission is to supply “higher and extra reasonably priced” well being plans to SMBs. It claims to avoid wasting firms as much as 20% in comparison with their present medical health insurance.
“Our plans cowl every part legacy well being insurers do whereas together with free visits to next-generation digital care companies in main care, psychological well being, pediatrics and maternity,” stated co-founder and CEO Will Younger.
Sana affords its plans in eight states, together with Arizona, Oklahoma, Texas, Illinois, Ohio and Kentucky. Having just lately expanded into Virginia and Indiana, it plans to make use of its new capital partly to maneuver into new states in coming months.
Its goal clients aren’t simply small companies that already supply medical health insurance plans, but additionally people who beforehand couldn’t afford to offer healthcare to staff, in keeping with Younger. He estimates that 35-40% of its new clients are such companies.
Most clients obtain 0% improve renewals, which Younger says is uncommon within the business, and have low co-pays.
Sana has about 20,000 folks on its well being plans as we speak, and has tripled the variety of clients over the previous 12 months, he stated. They embody Bishop Cider, Ben Hogan Golf and BrewBike, amongst others.
“We aren’t worthwhile but, however plan to get there with this spherical of funding,” Younger informed TechCrunch.
The corporate’s mannequin is exclusive, in his view, due to its vertically built-in method. It makes cash by charging charges for a wide range of companies associated to promoting, underwriting and administering well being plans. It additionally earns income on insurance coverage threat.
In January, Sana opened its first bodily main care well being middle, dubbed Sana MD, for its members in Austin. Concierge care on the middle is out there to its members on most plans freed from cost, in keeping with Younger.
Notably, each Belief Ventures and Gigafund have been buyers in Sana because the firm’s seed spherical in 2019. The latter has led 4 separate rounds of funding within the firm, as a result of “the staff continues to impress…with their phenomenal imaginative and prescient and execution,” stated Stephen Oskoui, managing accomplice of Gigafund, in a written assertion.
Salen Churi, founder and basic accomplice at Belief Ventures, believes that Sana’s strengths lie in its potential to leverage “an enormous community of suppliers” and “offering entry to cutting-edge digital well being and wellness applied sciences — all at a decrease value to small companies than legacy medical health insurance.”
Moreover increasing into new markets, Sana plans to make use of its new capital to rent throughout its operations, member advocacy, gross sales and advertising groups. It additionally plans to open extra main care well being facilities in further areas, in keeping with Younger.
Presently, remote-first Sana has 170 staff, up from 80 in the beginning of 2021.
The insurtech sector has had its ups and downs as of late. Publicly traded firms within the house are nonetheless struggling whereas different startups are shedding and nonetheless others additionally elevating new capital at unicorn valuations.