18 Jul, 2018, 06:00 ET
NEW YORK, July 18, 2018 /PRNewswire/ -- Centivo, a new type of self-funded health plan, has raised $34 million in Series A funding. The capital will be deployed to build the company's technology and infrastructure, develop local partnerships, and support market launch. Bain Capital Ventures led the financing round, with additional investments from F-Prime Capital Partners, Maverick Ventures, Bessemer Venture Partners, Ingleside Investors, Rand Capital (NASDAQ: RAND), Grand Central Tech Ventures, Oxeon Investments, and several individual investors, including industry veterans Jim Foreman, Ken Goulet, and Kevin Hill.
Centivo was founded to bring cost sustainability to employers and affordable, high-quality healthcare to the millions of Americans who struggle to pay their healthcare bills. "After nearly 20 years of 'consumerism,' healthcare remains as unaffordable and inefficient as ever," noted Centivo CEO and co-founder Ashok Subramanian. "Employers are tired of apologizing to their employees for rising costs and diminishing benefits. It is time to turn the page on the failed era of high deductibles and implement a new solution that produces better results for individuals, employers, and providers."
The Centivo model emphasizes the partnership between individuals and their primary care team as the proper model to coordinate healthcare needs. Centivo's provider partners are dedicated to improving quality, affordability, and access to care, and to helping individuals more effectively navigate the healthcare system. Members are rewarded for choosing high-value care and adhering to a health action plan and are supported through a state-of-the-art digital app and dedicated concierge team. Centivo serves as a health plan or third-party administrator (TPA) for employers and partners closely with local health plans to enhance their offerings.
"While the healthcare system is broken, excellent providers—physicians, nurses, pharmacists, and more—improve lives and provide high-value care every day in every community in America," added Subramanian. "Using analytics and emerging technology, Centivo identifies, partners with, and amplifies the work of the best providers and engages them as true partners to deliver great, cost-effective care to patients."
Subramanian was previously CEO and co-founder of Liazon, an online benefits marketplace company acquired by Willis Towers Watson in 2013. He has assembled a team of industry veterans and innovators to lead Centivo.
"We're thrilled to lead this investment at a time when we know the market is ready to accept bold changes in healthcare," said Yumin Choi, managing director at Bain Capital Ventures. "Through a robust technology platform, analytics, and partnerships with key players in each market, Centivo can deliver high-value care that's far more efficient and cost-effective than current solutions. We're excited to help Centivo gain momentum with employers as it looks to rapidly scale." Mr. Choi will join Centivo's board of directors.
Centivo is launching its product for the 2019 plan year, with an emphasis on employers with employees in New York, New Jersey, Connecticut, and select other markets.
Centivo is a new type of self-funded health plan built specifically for employers and their employees and families. Centivo targets zero healthcare trend and improved healthcare outcomes by rewarding members and providers for smart choices and actions while delivering an exceptional member experience.
The Centivo model acts as a catalyst to enhance healthcare purchasing and delivery through: (1) an innovative primary care-centered network focused on outcomes; (2) a dynamic benefit design that rewards members for high-value care and adherence; and (3) a state-of-the-art, digital technology platform and concierge support that enables optimal care and an exceptional experience. Centivo serves as a health plan or third-party administrator (TPA) for employers and partners closely with local health plans and TPAs to enhance their offerings.
About Bain Capital Ventures
Bain Capital Ventures partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in enterprise software, infrastructure software, healthcare, and industries being transformed by data. Bain Capital Ventures has helped launch and commercialize more than 200 companies since 1984, including DocuSign, Jet.com, Kiva Systems, LinkedIn, Rapid7, Rent the Runway, SendGrid, SurveyMonkey, Taleo, Turbonomics, and TellApart. Healthcare investments include Ability Networks, AbleTo, Doc Halo, Humedica, Liazon, Liberty Dialysis, MedeAnalytics, MedHOK, MinuteClinic, and Sansoro Health. Bain Capital Ventures has approximately $3.9 billion of assets under management with offices in San Francisco, Palo Alto, New York, and Boston. Follow the firm via LinkedIn or Twitter.
About F-Prime Capital Partners
F-Prime Capital Partners is a global venture capital firm investing in life sciences, healthcare, and technology. Since 1969, F-Prime has worked closely with entrepreneurs and academics to create innovative solutions to some of the world's most significant challenges in healthcare and technology. For more information, please visit fprimecapital.com.
About Maverick Ventures
Maverick Capital is a global investment firm that has been investing in early stage companies for over 20 years. By working with Maverick Ventures, entrepreneurs get the best of both worlds – a focused, agile team of venture partners – and the resources, reputation and relationships of a multi-billion dollar fund. Maverick Ventures invests through an evergreen structure that allows it to support entrepreneurs for an indefinite time horizon. Learn more about Maverick Ventures at http://www.maverickventures.com/.
About Bessemer Venture Partners
Bessemer Venture Partners is a $4.5B global venture capital firm that invests in consumer, enterprise and healthcare startups from seven offices around the world. One of the longest standing venture capital firms in the world, Bessemer invested in the early stages of Pinterest, Twitch, Allscripts, Bright Health and Skype and has helped 121 of its companies go public, including SendGrid, Twilio, MindBody, Ovascience, Shopify, Wix, Yelp and LinkedIn. Follow us @BessemerVP.
About Ingleside Investors
Ingleside Investors represents the investment interests of the New York-based Israel family. The firm has a long history of investing across a range of asset classes, with a particular focus on private investments in growing companies.
About Rand Capital
Rand Capital (NASDAQ: RAND) provides investors the ability to participate in venture capital opportunities through an investment in the Company's stock. Rand is a Business Development Company (BDC) with a wholly-owned subsidiary licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC). Rand focuses its equity investments in early or expansion stage companies and generally lends to more mature companies. The Company seeks investment opportunities in businesses with strong leaders who are bringing to market new or unique products, technologies or services that have a high potential for growth. Additional information can be found at the Company's website where it regularly posts information: http://www.randcapital.com/.
About Grand Central Tech Ventures
Over the past three years, Grand Central Tech has built NYC's largest and most competitive innovation hub within 335 Madison. At GCT's core is its market-redefining accelerator: a no-rent, no-equity, year-long program that has attracted some of NY's most sophisticated founding teams (2% annual acceptance rate) and created an investment pipeline of ~100 of NYC's premier startups. Under the right circumstances, GCT invests in standout portfolio companies, alongside top-tier lead investors.
About Oxeon Investments
Oxeon Partners is a healthcare growth services firm, connecting our partners with the fundamental drivers of business growth: great people, transformational business partnerships, strategic investments, and next generation business ideas. Oxeon Investments, a subsidiary, selectively converts service fees into equity of exceptional healthcare entrepreneurs and companies to more closely align itself with the long-term success of its clients.
Erin Lockhart, Epoch PR
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