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.
About Centivo
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.
Press Contact:
Erin Lockhart, Epoch PR
408-334-5463
erin@epoch-pr.com
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SOURCE Centivo