NEW YORK, Dec. 7, 2020 /PRNewswire/ -- Centivo, a new type of digital health plan that is built to save 15% or more compared with traditional insurance carriers and is easy to use for employers and employees, announced today that it has raised $34 million in Series B funding. The company will use the financing to expand its offerings into new markets and further scale its operations in response to growing demand.
B Capital Group, a leading global technology investor, led the round. New investors Define Ventures, HarbourVest Partners, and Nassau Street Ventures, an AVG fund, and existing investors Bain Capital Ventures, Company Ventures, F-Prime Capital, Ingleside Investors, Maverick Ventures, and Rand Capital (Nasdaq: RAND) also participated, as well as various individuals.
"The rising cost of healthcare continues to be a challenge for both employers and their employees," said Karen Page, General Partner at B Capital Group, who is joining the Centivo Board of Directors. "Centivo is structurally lowering the cost of healthcare purchasing by using technology and analytics to create efficiencies and improve outcomes. Their solution yields sustainable savings and boosts quality for the long term for employers and employees alike."
Making Healthcare Affordable for Employers and their Employees and Families
Centivo was purpose-built to serve the self-funded employer and allows them to offer a turn-key benefits solution that meets the needs of a diverse workforce. With Centivo, employers can offer their employees affordable and predictable costs, a high-tech member experience, exceptional service, and a range of benefit options including both traditional and proprietary networks. Centivo develops high-value networks in partnership with leading local healthcare providers and uses data analytics to refine the network and navigate members to the right providers. Members get a partner for all their healthcare needs through a primary care-centered model, as well as expanded access and fully integrated virtual care. Savings come from focusing spend on delivering high-quality care at the right place and time through coordinated care and by steering members to high-value providers.
"Nearly half of adults said they find it difficult to afford their health insurance deductible and even more have skipped or delayed care because of the cost. The COVID-19 pandemic is putting even more financial stress on these individuals and the companies that employ them," said Centivo CEO and co-founder Ashok Subramanian. "Excellent healthcare shouldn't break the bank, and Centivo is proving it can be delivered affordably and effectively. By curating a network of top providers and leveraging data analytics, we can offer lower costs and help members effectively navigate their healthcare journeys."
Dramatic Growth in 2020
Centivo launched in 2019 to bring cost sustainability to employers and affordable, high-quality healthcare to the millions of Americans who struggle to pay their healthcare bills. Centivo aims to align incentives among employers, members and providers to deliver and use high-value healthcare.
Stew Leonard's, a family-owned and operated farm fresh food store chain with seven locations in Connecticut, New York and New Jersey, moved to Centivo in their decade-long quest to offer their employees quality, affordable care. "The focus on primary care and quality, as well as their nimbleness, is what drew us to Centivo," said Karen Mazako, vice president of Human Resources at Stew Leonard's. "Our Team Members love the predictable costs with copays instead of deductibles and coinsurance, and I love having a partner working right alongside us to improve outcomes."
In the past year, Centivo has experienced phenomenal growth, tripling the number of clients and members it serves. Provider partners include leading health systems including Mount Sinai Health System, Orlando Health, Scripps Health, and UCLA Health, among others, as well as independent practices.
Centivo's health plan solution is available to mid-sized and large employers in New York, New Jersey, Connecticut, Southern California, Florida, and North Carolina, and will be expanding to additional markets in 2021.
Centivo is a new type of digital health plan for self-funded employers that is built to save 15% or more compared to traditional insurance carriers and is easy to use for employers and employees. Centivo's mission is to bring lower cost, higher quality healthcare to the millions of working Americans who struggle to pay their healthcare bills. With Centivo, employers can offer their employees affordable and predictable costs, a high-tech member experience, exceptional service, and a range of benefit options including both traditional and proprietary networks. Centivo develops high-value networks in partnership with leading local healthcare providers and uses data analytics to refine the network and navigate members to the right providers. Members get a partner for all their healthcare needs through a primary care-centered model, as well as expanded access and fully integrated virtual care. Centivo has offices in Stamford, CT, Buffalo, NY and New York, NY. Learn more at Centivo.com.
About B Capital Group
B Capital Group is a global firm specializing in equity investing in venture and growth-stage companies that have achieved traction with customers. Through our extensive global network and exclusive partnership with The Boston Consulting Group, we help high growth startups navigate business challenges, raise capital, and attract talented leadership at key points of their journeys to scale. With offices in San Francisco, New York, Los Angeles and Singapore, B Capital believes innovation can come from anywhere. Our unique multinational presence and deep industry knowledge have enabled us to build a portfolio of startups in Enterprise application software, Infrastructure, Security and AI/ML, Fintech and Insurtech, and HealthcareTech and Bio IT that are transforming large traditional industries across borders and geographies. Portfolio companies include AImotive, Atomwise, Blackbuck, Bounce, Bright.md, Centivo, Evidation Health, Icertis, INTURN, Khatabook, Plastiq, Ninja Van, Notable Labs and SilverCloud Health. For more information, visit bcapgroup.com.
About Define Ventures
Define Ventures is an early-stage venture capital firm focused on building digital health companies redefining healthcare that will change all of our lives. We believe unparalleled change is happening in healthcare at the intersections of healthcare, technology, and consumer trends. The Define team has partnered with companies, such as Livongo, HIMS, etc. and believes that digital health entrepreneurs deserve investors that have proven digital health expertise and experience. We focus on partnering with entrepreneurs from incubation, seed, Series A, and Series B investments. For more information, please visit https://definevc.com/.
HarbourVest is an independent, global private markets investment specialist with over 35 years of experience and more than $69 billion in assets under management, as of June 30, 2020. The Firm's powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. HarbourVest has more than 600 employees, including more than 145 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $42 billion to newly-formed funds, completed over $25 billion in secondary purchases, and invested over $18 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, and actionable insights.
About Nassau Street Ventures and Alumni Ventures Group
Nassau Street Ventures is Alumni Venture Group's Princeton-focused VC fund. Alumni Ventures Group (AVG) is a venture capital firm investing in a broad range of investments across industry sector, investment stage, and region. With over $500 million in assets under management amongst nearly two dozen alumni and focused funds, AVG has invested in over 550 unique companies. AVG offers portfolio companies fast, low friction funding and the ability to leverage the connections and expertise of over 550,000 investors and AVG community members. Now ranked by PitchBook as one of the most active venture funds in the world, AVG continues to expand and deliver on its core value proposition: offering a way for individuals to easily invest in venture assets. AVG funds are private, for-profit, and not affiliated with or sanctioned by any school. For more information about AVG, visit avgfunds.com.
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