In early 2010, the Affordable Care Act was signed into law and has since covered more than 8 million consumers after going into effect in January. The significance of the law has not been lost on investors who have put more than $528M into companies operating in the health insurance tech space since 2011.
From health insurance recommendation engines to healthcare benefits software, startups in the health insurance tech ecosystem cover a wide range of use cases. This year alone has seen investors put more than $240M into health insurance tech companies across 14 deals including FirstMark Capital-backed Gravie and Great Hill Partners-backed Bswift. The chart below highlights the surge in deals and dollars for startups operating in the space in the last few years. 2014 has already exceeded last year’s funding and is on track to set a deal activity high.
California, New York take majority of deals
Geographically, health insurance tech financings have spanned the country. That said, 48% of deal activity has taken place in California. New York-based companies took second, grabbing 14% of deals over the period. Of note, Thrive Capital’s Josh Kushner’s online health insurance provider Oscar Health has raised $150M across three financings.
Health Insurance gets a tech makeover
Who’s operating and investing in this space? A cross-section of funded health insurance tech companies along with their investors and focus areas are highlighted below.