SAN FRANCISCO, CA--(Marketwired - December 16, 2015) -
Clover Health, the first and only health insurance company successfully using technology to improve health outcomes, today announced it has partnered with Sequoia and raised $35 million in Series B funding. Sequoia led the round, with partner Michael Dixon joining the Clover Health Board of Directors. Existing investors First Round Capital and Athyrium Capital Management, as well as other individual angel investors, also participated in the round. The company plans to use the additional financing to rapidly scale its engineering, data science and care management teams to drive growth and innovation as well as expand Clover Health to new markets.
"At Clover, we're focused on bending the risk curve, using patient-centered analytics and a dedicated care management team to identify potential risks and directly provide preventive care to members when they need it most. We've already seen a significant reduction in hospital admissions from this approach and hope to see that trend continue," said Vivek Garipalli, co-founder and CEO, Clover Health. "This new capital provides us with the flexibility to expand strategically into new markets, as well as continue to build out our technology stack and improve member experience."
Clover has created a new health insurance model by integrating technology into every aspect of its members' care, improving health outcomes for the patients who often need it the most: the elderly and disabled. In order to do this, the company organizes disparate sources of data, such as lab results, prescriptions and EMRs, to identify potential risks and directly fill gaps in care. This allows Clover to take a proactive role in care management, and move beyond 'contractual innovation,' which has created an unsustainable burden upon physicians.
"We're thrilled to partner with Vivek, Kris, and the team at Clover. The time has come for a technology company that uses cutting edge data science to improve outcomes for patients and build mutually beneficial relationships with providers," said Michael Dixon, partner, Sequoia. "Medicare Advantage is a natural place to start as it is the health insurance category that most closely resembles more traditional consumer markets. And that's where the companies that build the most value win."
"Clover's technology team is streamlining the software that powers health insurance and rebuilding it around our core data systems. This empowers our passionate team of clinicians and customer service reps to continuously make the best decisions for our members," said Kris Gale, co-founder and CTO, Clover Health. "It is inspiring for our team to be able to modernize healthcare technology in a way that directly impacts the quality of healthcare our members receive."
Founded in 2012, by serial healthcare entrepreneur Vivek Garipalli and former Yammer head of engineering Kris Gale, Clover Health delivers a lower cost, improved experience for its members, including a $0 monthly premium, $0 co-pay for primary care doctors, $0 payment for generic prescriptions, and enhanced out-of-network benefits.
About Clover Health
Clover Health is reinventing the health insurance model by integrating technology into every aspect of its members' healthcare. The Clover data and analytics platform uses continuous, real-time monitoring to prevent hospital admissions, reduce avoidable spending, and identify and better manage chronic diseases. Built with technology at its core, Clover aggregates and structures data from a wide range of sources -- from lab and radiology results, to customer service interactions and home visits. Clover is headquartered in San Francisco. For more information visit www.cloverhealth.com.
The Sequoia team helps a small number of daring founders build legendary companies. We spur them to push the boundaries of what's possible. In partnering with Sequoia, companies benefit from our unmatched community and the lessons we've learned over 40 years working with Steve Jobs, Larry Ellison, John Morgridge, Jerry Yang, Elon Musk, Larry Page, Jan Koum, Brian Chesky, Drew Houston, Adi Tatarko and Jack Dorsey, among many others. In aggregate, Sequoia-backed companies account for more than 20% of NASDAQ's total value. We're proud that their success also fuels great causes. The vast majority of money we invest is on behalf of non-profits and schools like the Ford Foundation, Mayo Clinic and MIT, which means that the returns generated from the incredible achievements of founders can make a massive difference.