Sana, a health care company that provides health benefits to small businesses at affordable prices, recently announced the closing of a $60 million Series B funding round, co-led by original investors Trust Ventures and Gigafund.
Existing investors who participated in the round included American Family Ventures, mark vc, Breyer Capital, JAM Fund and Liquid 2.
The Series B close follows Sana’s $20 million Series A Extension funding round close in October 2021. Sana has raised $107 million to date.
This capital from top investors in insurtech and regulated industries speaks to Sana’s trajectory towards becoming an industry leader and challenging the ‘Big 5’ health insurance companies.
“Trust Ventures and Gigafund have been investors since our seed round,” said Will Young, Sana co-founder and CEO. “They believe in Sana’s mission and have been valuable partners over the last three years. They’ve seen the opportunity that lies ahead and have supported us every step of the way.”
Sana is revolutionizing health care options for small businesses. In fact, when Sana enters a market, 40% of its new customers are small businesses that were previously unable to provide health care to employees, largely due to high costs.
Sana’s customers often save up to 20% compared to legacy insurers and most customers receive 0% increase renewals, which is unheard of in the industry. Sana is known for affordable employer health plans, $0 virtual doctors’ appointments, low co-pays, and 95% customer-service satisfaction.
Investor Perspective on $60M Series B Funding Round
“Health insurance is a critical way employers can support their employees, but small business health care has been stagnant for decades,” said Salen Churi, Trust Ventures general partner. “Sana delivers dramatically better care at lower prices that meets users where they’re at. Sana has a revolutionary all-access network so that members can keep their preferred providers as well as telehealth and access to the best health and wellness apps on the market – all at a lower cost to small businesses than legacy health insurance. Trust Ventures is proud to support Sana as they continue delivering on their mission of revolutionizing American health care.”
These investors know the industry well and have voted on Sana’s distinct vertically integrated business model with their checks. From bringing several facets of the health insurance value chain under one roof to providing direct primary care to members, Sana is poised to take on the health insurance monopolies across the U.S. in a way few others can.
“Gigafund has now led four separate rounds of investment in Sana because the team continues to impress us with their phenomenal vision and execution,” said Stephen Oskoui, Managing Partner of Gigafund. “Sana empowers small businesses to cut costs and help their employees become happier and healthier. The company is improving the health care system and eliminating inefficiencies that strangle the economy.”
Sana Expands Customer-Base, Geographical Presence and Team
The fresh capital will enable Sana to expand its team, particularly those who work as member advocates and in customer success to serve an unprecedented volume of new customers. Sana clients have grown by more than 200% during the past year. Operating only in Texas in early 2020, Sana today is available in eight states. The company recently expanded into Virginia and Indiana, and will continue its reach into new states during the coming months.
“We’re excited to use this funding to bring Sana and reliable, affordable health care to more small businesses and their employees,” Young said. “We have an incredible group of investors who are all experts in some facet of our business, and their desire to continue to invest in us is a strong affirmation that Sana is offering a great solution to a big problem.”
In January, the company opened Sana MD in Austin, Texas. It is Sana’s first primary care health center for members. Demand for appointments has surpassed expectations, spurring Sana to increase hiring staff for the center. In addition to in-person office visits, Sana gives employees access to virtual care with providers specializing in primary care, pediatrics, maternity and mental health.
The new funding will also fuel Sana’s membership growth in new markets. As membership in other markets reaches critical mass, the company will open additional health centers outside Austin. Sana’s mission is to make quality health care understandable, accessible and affordable.
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